Question. No 2

As we know that technological advancements and creative destruction continuously reducing the cost occurred on the manufacturing of smart phones.

(i)Use supply & demand framework to show what happens to price, quantity, consumer surplus, and producer surplus in the market for smart phones.

(ii)Smart phones & adding machines or calculators are substitutes. Use a supply & demand framework to show what happens to price, quantity, consumer surplus, and producer surplus in the market for adding machines or calculators. Should calculators or adding machine producers be happy or worried about the technological advancement in smartphones?

(iii)Smartphones and chargers are complements. Draw a supply-and-demand diagram to show what happens to price, quantity, consumer surplus, and producer surplus in the market for chargers (3^rd party chargers). Should chargers' producers be happy or concerned about the technological advance in smartphones?