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. The task at hand is to graph the supply and demand curves in Excel using the values given in the table below.
Price | Quantity Demanded | Quantity Supplied |
100 | 1100 | 100 |
200 | 1000 | 200 |
300 | 900 | 300 |
400 | 800 | 400 |
500 | 700 | 500 |
600 | 600 | 600 |
700 | 500 | 700 |
800 | 400 | 800 |
900 | 300 | 900 |
1000 | 200 | 1000 |
1100 | 100 | 1100 |
Import the graph into a Word document and address the following.
Identify the firm’s equilibrium price and quantity in the market.
Calculate market shortages and market surpluses given the values from the graph based on the prices set by TOF. Be sure to define a market shortage and a market surplus.
Identify and discuss the price TOF should charge for its cellular phones.
From the graph derived, illustrate producer and consumer surplus. Please determine both producer and consumer surplus.
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