Cost of production Product quality Demand for product Change in taste and

Cost of production product quality demand for product

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Cost of production Product quality Demand for product Change in taste and preferences of consumer Consumer income Price of competitor Product life cycle Technology Prices of mobile phones in UK are depending on so many factors.It depends on two important forces of a market structure i-e demand and supply curves. Factors that determines price of mobile phones in UK New technology has given a different meaning for everything.Specially there is a big change in level of communication that leads to advanced devices particularly mobile phones.It is an electronic device which can be use for two way communication.Its going to be a basic need for every single person and thatswhy there is perfect competition in this market of mobile phones.There are different models in market like Apple,Samsung,Nokia,Blackberry and so many. They are competing with each other to offer a best and reasonable price to their customers. Factors like cost,demand,competition, government regulations have a strong effect in setting up a price.Following statistics discuss the factors that influence price in UK market. Factors for Demand 1. Income Income shows a purchasing power of a consumer.Income effects the varying level of quantities of goods and services. Percentage of households with a mobile phone in the United Kingdom (UK) in 2014, by gross income decile group
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5 The above graph shows the statistics of percentage of households that own mobile phones based on their income. Facts reveals that income is a major factor that determines price of mobile phones because if a person income increases the demand for a particular product (i-e mobile phone) increases and accordingly price changes as well. According to consumer behaviour,the increase in income rise the demand of a particular product.Typically consumers buy more electronic or expensive products like mobile phones in case of income increases. The above demand curve shows the increase in demand from Q to Q1.This may effect the prices of mobile phones in two ways. 2. Population
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6 Increasing growth of population is a positive perspective in economics. The growth of population increase the productive capacity of economy and shows the increasing demand for products.In case of mobile phones the following diagram shows that 74% adults use the internet in mobile phones.It means with increasing level of population will increase the demand for mobile phones and it leads to change in price. Mobile internet use, 2015, Great Britain The above graph shows the increase in demand when number of buyers increase in market. Quantity demanded for mobile phones increase from Q to Q1. 3. Preferences Consumer preferences focus on choices that lead to happiness and satisfaction.Favourable product that customers wants to make their desire will be demanded more at each price. In technological advancement mobile phones are fastest adoption to cover personal and daily life communication all over the world.For example,the demand for new model of APPLE 6s is going up at customers like the APPLE phones as compare to others.
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