Question
You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon
You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. The task at hand is to graph the supply and demand curves in Excel using the values given in the table below.
Price
Quantity Demanded
Quantity Supplied
500
1200
200
600
1100
300
700
1000
400
800
900
500
900
800
600
1000
700
700
1100
600
800
1200
500
900
1300
400
1000
1400
300
1100
1500
200
1200
Import the graph into a Word document and address the following.
- Identify the firm's equilibrium price and quantity in the market.
- Calculate market shortages and market surpluses given the values from the graph based on the prices set by TOF. Be sure to define a market shortage and a market surplus.
- Identify and discuss the price TOF should charge for its cellular phones.
- From the graph derived, illustrate producer and consumer surplus. Please determine both producer and consumer surplus.
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Bank Management
Authors: Timothy W Koch, Mark S Cracolice
7th Edition
1111804265, 9781111804268
