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Unformatted text preview: cell phone producers. For example, since iphones may only use AT&T as the provider, there may be other providers who have better features that make other cell phones viable substitutes. (e) The iphone is a luxury good due to its high price and social status value. 22. (a) Demand increase; Pe increase and Qe increase. (b) Supply decrease; Pe increase and Qe decrease (c) Domestic P decreases, domestic Qd increases, domestic Qs decreases (d) Supply increase, Pe decrease, Qe increase (e) Demand increases & supply decreases, Price will increase, but change in Q is ambiguous...
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This note was uploaded on 09/26/2008 for the course BEC 211 taught by Professor Rivera during the Spring '08 term at University of Illinois at Urbana–Champaign.
- Spring '08