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Question 3 The market for smart phones has grown rapidly over the past few years, due in part to the overwhelming success of the Apple iPhone. Following the successful launch of the iPhone in 2007, companies such as Samsung (Galaxy), HTC (MS), and LG have all introduced products to compete with the iPhone. a. Should iPhone and other smartphones be considered a substitute or complement? Briefly explain. b. Illustrate and explain how would an increase in price of iPhone affect the demand curve for other smartphones? Question 4 Indicate whether each of the following situations would shift the demand/supply curve to the left, to the right, or not at all. Illustrate where necessary. a. b. d. e. An increase in the number of firms in the market A decrease in income and the good is an inferior good A decrease in productivity An increase in the price of a substitute good An increase in the expected future price of a product A decrease in the price of an input