Suppose there are two types of smartphones in the economy: the iPhone and the Galaxy. The quantity demanded for each type of smartphone decreases as price increases and the quantity supplied for each type of smartphone increases as price increases. The two smartphones are substitutes for one another. Initially the markets for both types of smartphones are in equilibrium. In each of the following questions describe the change to the demand and the supply (this could be a demand shift, a supply shift, a change in the quantity demanded, and/or a change in the quantity supplied) for both types of smartphones and explain how the equilibrium prices and quantities changed compared to the initial equilibrium prices and quantities for these two types of smartphones. Before each scenario assume the market for these two smartphones has returned to the initial, original equilibrium. a. Suppose there have been reports of several incidents of Galaxy phones igniting while being charged. These reports have caused a panic and badly hurt the reputation of Galaxy smartphones and consumers' willingness to buy this smartphone. Consumers are now more inclined to buyivat iPhones. Go to Set A critical component of the iPhone is a chip produced by Apple. Suppose that Apple recently closed a major factory due to financial difficulties, causing a halt in the production of this chip. This event negatively affects the number of iPhones in the market. Furthermore, many consumers were employed in the Apple factory and are now facing a lower income due to their loss of employment. Activate c. Suppose a new federal regulation regarding ionizing radiation in smartphones is implemented and this implementation increase consumers' confidence in this product and they are now more inclined to buy a smartphone. However, this regulation also resulted in additional compliance costs for the producers, raising their production costs. d. Suppose a new technology becomes available, reducing the production costs for both types of smartphones. At the same time the new technology reduces the price of tablets. Tablets are produced by Apple and they are substitutes to the Galaxy smartphone, but complements to the iPhone. e. Not yet recovered from the effect of the igniting Galaxy phones, consumers decide to replace their Galaxy phones with a different model if their income will allow it. Fortunately, Apple just opened a new factory producing the necessary iPhone chip, so many consumers also got rehired at this factory. Furthermore, the number of iPhones in the market has risen thanks to the increasete in the production of the chips. Go to Setti