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In recent years, technological improvements have greatly reduced the costs of producing basic cell phones, anda number ofnew firms have entered the cell phone industry.

In recent years, technological improvements have greatly reduced the costs of producing basic cell phones, anda number ofnew firms have entered the cell phone industry. At the same time, prices of substitutes for cell phones, such as smartphones and some tablet devices, have declined considerably. Construct a supply and demand diagram of the market for cell phones. Illustrate the impacts of these developments and evaluate the effects on the market price and equilibrium quantity.

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