econ demand and supply
consider the demand for mobile phone.what specific factors would determine the demand for this product???
- Kwok WaiLv 71 decade agoFavorite Answer
1. Income level: the higher the income level of a country, the more demand on mobile phone. 2. Price of complementary good i.e. mobile phone services cost, the lower the monthly fees on mobile phone services, the higher the demand. 3. Popularity of mobile phones: the more popular of mobile phones, the higher the demand. 4. Price of substitute: the Lower the price of substitute, the lower the demand of mobile phones. fixed line home telephone to a certain extent can be considered as substitute of mobile phones 5. Government policy: if there is a research showing that using mobile phones too much is hazardous to our health and government restricted people to use mobile phone, the demand would drop significantly. Moreover, if government forced children and elderies must have a mobile phone in order to reduce missing persons, the demand on mobile phones must increase.
2008-04-22 10:47:27 補充：
7. Durability- the more durable of the mobile phones, the smaller the demand on them.