Consider the market for cable-based telephone service which is a normal good. Ex

Consider the market for cable-based telephone service which
is a normal good. Explain whether the following events would cause a movement
along the demand curve or a shift of the demand curve. If it is a shift please
indicate in what direction the curve will shift. Graphs are not necessary but
you are may draw them if you wish to. You do have to give an explanation in
each case.(a)Firms
providing cellular phone service (a substitute for cable-based serviced) reduce
their prices.(b)Firms
providing cable-based phone services reduce their prices.(c)The
price of the modems necessary to consume cable-based phone service (which
consumers buy from a third party and not from the cable company) becomes more
expensive.(d)Improvement
in technology moves consumer tastes in favor of cellular phone service and away
from cable phone services.2. Apple released two new models of the IPhone
the 5C and the 5S on Friday September 20. Assume that all phones available are
sold out by Monday September 23and then no phones are available for about 10
days till new supplies are again available. Is the price that Apple is charging
for the iPhones equal to above or below the equilibrium price? Please give an
explanation.3. Assume that immigrant workers comprise a
significant part of the labor force in raspberry farms in the United States. IF
lawmakers in Washington D.C. change the laws and make it illegal to hire
foreign workers what will happen to the demand and supply curves for
raspberries and therefore to the equilibrium price and quantity? Please explain
and draw a graph showing the changes.
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