Question

write down the demand and supply equations for wireless phones, include two exogenous variables in each equations

Answer 1

Demand equation for wireless phones: P = D (P,eA,eB) and supply equation for wireless phones: Q = S (P,eA,eB)

Explanation:

The demand and supply relationship is often depicted in the form of a graph. The upward slope of the curve reflects the law of demand. The demand for wireless phones might be affected by the number of new mobile phone subscribers, the average cost of purchase for a wireless phone, and the length of the contract. The supply of wireless phones is dependent on the number of telecom providers in a given area, production capacity for wireless phones, and the average length of the contract.

Exogenous variable A: Price

Exogenous variable B: Population growth rate

Demand equation for wireless phones: P = D (P,eA,eB)

Supply equation for wireless phones: Q = S (P,eA,eB)