You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. You have been tasked with providing the Committee Board members of TOF with a report that discusses issues that would be encountered by Technologies of the Future (TOF) when deciding whether to trade at a domestic level and how TOF would be affected by international trade, specialization, tariffs, and quotas. Graph the supply and demand curves in Excel using the values given in the table below and paste the graph into a Word document.Your graph must be properly constructed; please use a scatter graph with markers or a scatter graph with smooth lines. The graph should include a chart title, x-axis, y-axis, and contain a properly labeled equilibrium point.
- Draw on your graph a price ceiling and a price floor and discuss what those terms mean. Explain which government mandated price would result in a market shortage and a market surplus and why?
- If the price elasticity of demand is 5, and prices increase by 10%, calculate the percentage change in quantity demanded.
- Explain which TOF smartphones and Apple iPhones would be considered substitutes or complementary goods in terms of changes in price, and what impact a change in quantity would have.
- Is the cross-price elasticity of demand positive or negative, and why?
- Explain which TOF smartphones and phone chargers would be an example of substitutes or complementary goods.