Explain the effects of each of the following factors on the market price and quantity of cell phones available in the market:
An increase in consumers’ income = if there is an increase in consumers income, there may be a decrease in the cell phones available for purchase because more people would have money to purchase phones. If more people are willing and able to purchase phones, the market price may increase on the device.
Technical improvements that reduce production costs = If production costs of the devices go down, the market price may decrease making the phones more affordable. If phones become more affordable and decrease in price, the quantity sold may rise to reflect the change.
A sharp decline in the cost of making fixed-line calls = if the cost of making fixed-line calls decreases, there may not be any change to the market price of phones however their may be an increase in quantity sold.
Discount given for its bread at the end of the day= 70%
Solution:
Salvage value<span> is the estimated resale value of a product at the end of its useful life. Since the
useful life of the loaf is 1 day and it was sold at the end of the day at 70%
off, the salvage value is </span>
