The Purpose Of Your Assignment Is To Apply The Week's Concep

The Purpose Of Your Assignment Is To Apply The Weeks Conceptual Model

The purpose of your assignment is to apply the week's conceptual models to analyze how external factors affect the supply and demand curves. Select one of the following cases. Analyze the impact of these events on the markets, on the supply and demand curves, and consequently, prices and volumes: Technological improvements related to cellphones. The impact of the pandemic on the supply chain. The impact of the war in Ukraine on commodities such as oil and grain. The impact of raising taxes on tobacco. Technological changes related to electric vehicles versus traditional cars in the car markets. Increases in interest rates of mortgage loans on the real estate market.

You must explain how the supply and demand curves are affected: do they shift to the right or left? Do they change their slope? What happens with the new equilibrium prices and sales volumes? Do they affect the elasticity of the demand or supply? In the short term, did the curve shift or was there only slippage on that curve? If the curve shifted, did it shift to the right or to the left? As it shifted, was there a shortage or excess in quantities demanded/supplied? As a result, what happened to the equilibrium price? To the equilibrium quantity? Finally, you should copy the supply and demand model scenario that best illustrates your answers. You should also explain your projections in the long run. What will happen in the long run with equilibrium prices and quantities? Explain why.

In this section, you should also choose and copy the supply and demand model scenario that best illustrates your answers. Your paper this week should be between 250 and 350 words. At the bottom of your assignment, you should include a word count.

Paper For Above instruction

The impact of technological improvements related to cellphones on the market provides a compelling case for analyzing shifts in supply and demand curves. When technological advancements make cellphones more affordable or improve their features, consumer demand typically increases. This situation causes the demand curve to shift to the right, indicating a higher quantity demanded at each price point. As demand rises, prices tend to increase, and producers respond by increasing supply, shifting the supply curve to the right in the long run. However, in the short term, the supply might incline more steeply due to manufacturing constraints, leading to a movement along the supply curve, known as slippage, rather than a shift. This immediate effect can cause a temporary shortage of cellphones, pushing prices higher until supply catches up with demand.

In terms of elasticity, technological improvements tend to make demand more elastic in the long run because consumers are more responsive to price changes owing to increased competition and better substitutes. The increase in supply eventually stabilizes prices at a new equilibrium, with higher quantities sold. In the short term, however, the supply may not shift immediately due to production limitations, causing excess demand or shortages, which temporarily elevate prices and quantities demanded. These short-term market disequilibria are corrected over time as producers innovate and expand capacity, shifting the supply curve further to the right.

Long-term projections suggest that technological advancements will continue to shift both supply and demand curves to the right, leading to higher quantities of cellphones sold at lower prices, assuming technological improvements also reduce production costs over time. This results in a new equilibrium with increased sales volumes and potentially lower prices if supply outpaces demand growth. However, if innovation significantly enhances the desirability or utility of cellphones, demand shifts might outpace supply, causing prices to remain stable or rise slightly in the long run. Essentially, sustained technological progress fosters a more competitive market, expanding total sales and potentially lowering prices if supply increases proportionately.

References

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