China produces smartphones, and hundreds of millions of Chinese have bought one. With intense competition among more than 150 brands, China’s smartphone producers are looking to capture the Indian market.

a. Explain the effects of the increase in Indian demand for smartphones on the market for smartphones and on an individual smartphone producer in the short run.

b. Draw a graph to illustrate your explanation in part (a).

c. Explain the long-run effects of the increase in global demand for smartphones on the market for smartphones.