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maksim [4K]
3 years ago
12

samsung come out with a new smart phone called Galaxy explosion 5 which is comparable to the newest iphone but cheaper. Dtermine

the supply and demand curve for iphones.
Social Studies
1 answer:
katrin [286]3 years ago
8 0

Samsung galaxy explosion 5 is the substitute of iphone.

Explanation:

Substitute goods are those goods which are which are same in fashion or the good provide the same level of satisfaction as that of the other good. In case of supply the substitute goods are those goods which use the same resources for the purpose of production.

A demand curve is downward slopping curve . When the price of the substitute good that is the price of Galaxy explosion decreases the demand for the substitute good will increase. As a result the demand curve will shift towards right.

A supply curve is an upward slopping curve. In case of supply curve when the price of the substitute good decreases it will cause an increase in the supply of the other good .

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