BBM102/03: You are a government economist analyzing the market for iPhones Consider the following events below: Microeconomics Assignment, WOU, Malaysia

Question 1

• You are a government economist analyzing the market for iPhones. Consider the following events below

1. The price of mobile phone batteries falls
2. iPhones become less popular among consumers

• Prices of other mobile phone brands decrease

1. iPhone sellers expect prices of iPhones to fall in the future
2. New health evidence shows that prolonged usage of mobile phones leads to negative health effects
3. More productive ways of making phones are found

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

• Consider the following table below:

Calculate the price elasticity of demand for Product 1 and Product 2

Question 2

Answer

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