Question (a) You are a government economist analyzing the market for iPhones. Consider the following events below i) Price of mobile phone batt eries falls (5 marks) ii) iPhones become less popular among consumers (5 marks) iii) Prices of other mobile phone brands decrease (5 marks) iv) iPhone sellers expect prices of iPhones to fall in future (5 marks) v) New health evidence showing that prolonged usage of mobile phones leads to negative health effects (5 marks) vi) More productive ways of making phones are found (5 marks)

Discuss the effects of each of these events on the prices and quantity of iPhones produced.

(b) Consider the following Table below:

Product 1 Product 2 Initial price and Price = RM1,0DO Price = RMZD quantity Quantity = 500 Quantity = 30 New Price and Price = RM1.500 Price = RM15 quantity Quantity = 400 Quantity = 35