Explain what would happen to the price and sales in Apple Iphone market if the following occur: (1) cost of iphone glass is cheaper to make, (2) Increase in incomes in US and around the world and (3) Price of the Cellphone plans became cheaper due to competition. Explain what will happen to the shifts and/or movements to the demand and supply curve in each case and then determine what happens to the sales and price Iphones. Each of the three cases is separate of the other.
(1) cost of iphone glass is cheaper to make, = Supply of Iphone increases and supply curve shift to right. Price will decrease but sales will increase.
(2) Increase in incomes in US and around the world = Demand of Iphone increases and demand curve shift to right.Both sales and price will increase.
(3) Price of the Cellphone plans became cheaper due to competition. = Demand of Iphone increases and demand curve shift to right. This is because use of phone has become cheaper.
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