StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Business
  • The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly. Yet the prices of mobile phones have fallen. Why Explain using relevant diagrams

The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly. Yet the prices of mobile phones have fallen. Why Explain using relevant diagrams - Essay Example

Not dowloaded yet

Extract of sample
The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly. Yet the prices of mobile phones have fallen. Why Explain using relevant diagrams

However, in the mobile phone market, the demand for mobile phones increases as the price of the mobile phones decreases. This can be attributed to various reasons.
Begg et al. (2011) notes that, for there to be an increase in demand, there have to be a change in one or more of the demand determinants. An increase in demand will in turn cause a shift to the right of the demand curve. When there is a shift to the right of the demand curve, the markets equilibrium will be disrupted thus causing a temporary shortage of the product being demanded. The temporary shortage created is eliminated with an increase in price of the product. However, in the mobile phone industry, there has been an increase in demand and a decrease in their prices. This can be attributed to various factors (Research and Markets 2011).
Sloman & Garratt (2010) posits that an increase in demand of mobile phones can be caused by an increase in buyers’ income. When the level of income of the buyer increase, the buyer gets more money to spend on a certain commodity, which they are interested in. this happens when there is an increase in the income for a normal good. Moreover, an increase in demand for mobile phones can be attributed to a decrease in income of the buyer for an inferior good.
Moreover, an increase buyer’s preference on mobile phones against other communication gadgets has caused a shift in the demand curve for mobile phones. Mobile phones are preferred since they are easier to use and results to instant feedback as compared to earlier means of communication such as letters. Moreover, mobile phones are preferred since they are cheap to afford as well as offers flexible means of communication (Mobile Promotions Market 2012). Mobile phones have gained consumer confidence in that the advanced systems allow the user to make audio-visual calls.
Furthermore, mobile phone industry has experienced a boom in sales due to inflexibility of its competitors. For ...Show more

Summary

An increase in demand for a product results when buyers have the will and the ability to purchase a good or a service at the stated price. This…
Author : qbins
The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly. Yet the prices of mobile phones have fallen. Why Explain using relevant diagrams essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly. Yet the prices of mobile phones have fallen. Why Explain using relevant diagrams"
with a personal 20% discount.
Grab the best paper

Related Essays

Mobile Phones Development
Usually, this development is under division into three stages or generation. The first generation of mobile phone industry or ‘1G’ as its popularly known, is the era of analog telecommunication i.e. it used analog signals contrary to digital signal which came later.
3 pages (750 words) Essay
Mobile Phones
Then in 1947, two young innovators, again from Bell Labs, proposed the cellular radio telephone network, with the theory of basing the area requiring the service to be divided into hexagonal cells (Rosewall, 2011) However, it was only in the late 80’s that the first commercial or hand held mobile phone was introduced to the world by Motorola, at a very high price range, targeting only the elite class.
3 pages (750 words) Essay
The Effects Of Mobile Phones
The effects of mobile phones. Mobile phones have a negative effect on users. Studies have shown that their use of affect the health of persons who use them. This is in addition to the negative effects it has on the behavior of young children. The use of mobile phones has also been found to affect driving performance.
2 pages (500 words) Essay
Children should not be allowed to own mobile phones
Name Course Instructor Institution Date Topic: Children should not be allowed to own mobile phones Modern mobile phones perform a wide range of functions ranging from voice calls, short message services, sharing multimedia files such as music, videos, and photos, accessing the internet and playing games among other functions (Bond 27).
3 pages (750 words) Essay
Power Control for Mobile Phones
As the number of cellular subscribers increases exponentially, there are several issues that have to be addressed to ensure effective and efficient usage of this technology while providing the users with a satisfying communication experience
8 pages (2000 words) Essay
Mobile Phones Development
it used analog signals contrary to digital signal which came later. Contrary to digital standards, in 1G, the voice is merely modulated to frequency equal to or above 150 MHz (Organization for Economic Co-operation and
3 pages (750 words) Essay
Mobile Phones
Then in 1947, two young innovators, again from Bell Labs, proposed the cellular radio telephone network, with the theory of basing the area requiring the service to be divided into
3 pages (750 words) Essay
What are the effects of mobile phones
According to BBC News (2002), studies have linked the use of mobile phones with headaches, hotspots in the brain as well as cancer. However, Foster and Moulder (2000) indicated that lawsuits that have been filed in courts in the United States have not been able to
2 pages (500 words) Essay
Causes and effects of using mobile phones

The mobile phones or smart phones are the product of this technology that has paved its way into the lives of every individual. Not only adults but many youngsters own this device and cherish the moments without realizing that they are wasting most of their time. No doubt this device has many uses.

1 pages (250 words) Essay
EXPENDITURE ON MOBILE PHONES
Increase in income positively affects the disposability and the real income of the consumers. Thus, all the factors above influence the consumer decision making regarding purchase of mobile phones and various
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation