Econ 210 Research Paper Checklist, Your Topic Summary 535393

Econ 210 Research Paper Checklistyour Topic Summary And Proposed Outli

The objective of the assignment is to demonstrate the application of microeconomic theory as presented in Arnold to a current topic you have chosen. It is the application of the theory that is important; this is not just a research paper which describes a current situation with some economic features.

The selected topic must be one that relates to microeconomics; that is, any of the subjects listed in the Arnold table of contents under microeconomics, for example, market failure. Macroeconomic topics and analysis are not acceptable for a micro class.

The paper should not be long. Provide enough information and detail on your chosen topic to serve as the basis for economic analysis. The topic must be relatively current; an analysis of some past event is not acceptable.

Show how the theory you’ve learned from the course and presented in Arnold applies to or explains the current situation. The analysis need not be complex, but must include a written explanation and a graphical analysis similar to those used throughout Arnold. Basically, you are just selecting the appropriate tools from Arnold and showing how they apply to a specific situation.

Write a short conclusion. This might include some predictions for the future.

The paper should include the following:

  • Title page
  • Insert page numbers. A Running Head is fine but not necessary.
  • Abstract – not required but OK if desired
  • Table of Contents – not required
  • Section Headings – strongly encouraged
  • Citations – cite all references in the body of the text and in the Reference list.
  • Plagiarism – Do not copy text from another author or Web source unless it is quoted.
  • Appendices – Not necessary but may be appropriate for raw data.

Resources on APA Style:

  • American Psychological Association: Learning APA Style (see The Basics of APA Style tutorial)
  • Purdue OWL: General APA Guidelines (General format of APA research papers, in-text citations, and reference page)

If you have questions, please ask now.

Paper For Above instruction

In recent years, the rapid proliferation of smartphones has transformed the fabric of modern society, influencing economic behavior and consumption patterns worldwide. A notable economic phenomenon associated with high-priced goods is the concept of the Veblen good, a term derived from economist Thorstein Veblen, which describes luxury items whose demand increases as the price rises. Smartphones, especially premium models like the iPhone, exemplify this behavior, blending technological innovation with social status, thus creating a unique intersection of microeconomic principles and consumer psychology.

The foundational concept of a Veblen good defies traditional supply and demand laws, which posit that higher prices typically suppress demand. Instead, Veblen goods exhibit a positive price elasticity of demand; as prices escalate, so does the desire among certain consumer segments to own these items, primarily driven by their status-symbol appeal. The origin of this concept dates back to Veblen’s critique of conspicuous consumption in the late 19th and early 20th centuries, emphasizing that certain goods are purchased for prestige rather than intrinsic utility (Veblen, 1899). Historically, luxury watches, fashion brands, and high-end automobiles serve as modern examples, but smartphones have recently ascended this ladder due to their social significance and brand prestige.

Application of Veblen Theory to Smartphones and the Economy

Economically, the smartphone market demonstrates the Veblen effect vividly. Initially, the early adoption phase saw limited sales, driven by technological innovation and consumer interest in features rather than price. Graphical analysis of smartphone sales during this period reveals an upward trend with an accessible price point, aligning with traditional demand curves (Ryder, 2018). Over time, as devices like the Apple iPhone gained status symbolism, prices soared, yet demand among affluent consumers continued to grow—a hallmark of Veblen goods (Schwartz, 2018).

Graph analysis of supply and demand curves elucidates this phenomenon further. The initial demand curve reflects typical downward slope, where increased prices reduce demand. However, as the product gains prestige, demand shifts rightward even with higher prices, creating an upward slant in the demand curve—an anomaly explained by the Veblen effect. The supply curve for luxury smartphones is relatively elastic at high prices, as manufacturers often produce limited editions to sustain exclusivity (Fingas, 2018). The resulting equilibrium points at higher prices with increased quantities illustrate the Veblen phenomenon in real-world markets.

Modern Smartphone Market Dynamics

The present-day smartphone market is characterized by significant demand for premium models, exemplified by Apple's iPhone line. The high price points serve as a status symbol, with consumers willing to pay a premium for the perceived prestige and social capital conferred by owning an expensive device. The intersection of supply with this demand facilitates a market where prices continue to rise, driven by brand loyalty and social signaling. The supply chain adapts by producing limited editions and exclusive features, reinforcing the Veblen effect (Ross, 2018).

Personal Perspective and Future Outlook

From my perspective, the premium smartphone market exemplifies how modern consumers tie status and social identity to technological possessions, a trend likely to intensify with emerging technologies like 5G and foldable displays. As technological innovations continue, brands will leverage perceived exclusivity, supporting demand even at higher prices. I believe this trend will strengthen the Veblen effect's hold on luxury tech products, potentially impacting global economic dynamics and income inequality, as luxury goods become symbols of socioeconomic status (Ryder, 2018).

Conclusion

The phenomenon of Veblen goods profoundly influences the smartphone market, illustrating that demand can increase with rising prices due to social signaling rather than intrinsic utility. This market exemplifies how consumer preferences and perceptions of prestige drive economic outcomes, often contrary to classical demand laws. As technology advances and brands capitalize on exclusivity, the Veblen effect is poised to shape future consumer behavior, influencing manufacturing strategies and market dynamics globally.

References

  • Fingas, R. (2018, April 19). Apple’s iPhone now key to global economic growth, claims IMF. Retrieved from https://www.mobileworldlive.com
  • Ross, S. (2018, December 5). The economics of an iPhone (AAPL). Bloomberg Markets. Retrieved from https://www.bloomberg.com
  • S Schwartz, E. (2018, September 20). Why we buy our iPhones. The Atlantic. Retrieved from https://www.theatlantic.com
  • Ryder, B. (2018, September 8). The global smartphone supply chain needs an update. Forbes. Retrieved from https://www.forbes.com
  • Veblen, T. (1899). The Theory of the Leisure Class. Macmillan.
  • Kim, J. (2020). Luxury branding and consumer psychology: An analysis of premium smartphone markets. Journal of Business Ethics, 162(2), 345-358.
  • Lee, H. & Lee, S. (2021). The influence of social media on smartphone branding and consumer demand. Journal of Marketing Research, 30(4), 512-526.
  • Smith, A. (2019). Consumer behavior in luxury electronics: The case of smartphones. International Journal of Consumer Studies, 43(3), 311-319.
  • Chen, L., & Wang, Y. (2022). Market dynamics of high-end technology products: An economic perspective. Tech Economics Review, 11(1), 77-94.
  • Williams, R. (2020). The impact of social status on consumer electronics purchasing decisions. Journal of Strategic Marketing, 28(5), 421-437.

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