“Supply demand. A commodity like gold may be

“Supply and demand is the basis of the world economic
system. In a world of advertising, marketing, and promotion, there is some
question as to whether demand creates supply or supply creates demand.
Whichever way it happens, there is no question that in the field of mobile phones the result is a massive
market.” (Xaxx) There are
factors to influence the demand for phones.

When it comes to supply and demand the change in the price of phones
play a big part in weather consumers actually buy the product. The income of
the consumers also plays a big part demand for this product. “An increase in disposable income enabling consumers to
be able to afford more goods. Higher income could occur for a variety of
reasons, such as higher wages and lower taxes.” (Xaxx) The next thing that
influences the demand for this product is the quality of the product. If the
quality of the product is not up to par, then the consumer will not purchase
the phones. So, this would mean if there is good quality or an increase of,
then this will encourage people to buy more.

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The
influence of the demand will be due to advertising. This will increase the
loyalty to the brand in which the consumer will purchase from. “An increase in
the price of substitutes, e.g. if the price of Samsung mobile phones increases,
this will increase the demand for Apple iPhones – a major substitute for the
Samsung.” (Xaxx) The complements are also affected by the demand. If there is a
fall of the complements price, then this will add to
the product in a way that enhances or improves it. For example, a lower price
of apple iPhone or android phones, the there will
be an increase the demand for compatible products. The expectations of future price increases influence the demand.
A commodity like gold may be bought due to speculative reasons; if you think it
might go up in the future, you will buy now. (Xaxx)

            There are factors that influence the supply of the
products such as phones. Things like new models, text messaging, and giving up
land lines. “Another factor that has
increased sales of mobile phones is the phenomenon of people who already had
land lines giving them up in favor of exclusive use of their mobile phones. Since
mobile phones can be used at home or in other locations, many people prefer to
pay only for the mobile phone account, and to use it as their home phone when
at home.” (Xaxx) Now when it comes to texting, that is an ability that mobile
phones have that land lines do not have that compacity to actually do. This feature
is something that many people actually prefer because of the flexibility and convenience
of messaging rather than talking on the phone.

            With the
crazy for the next new thing, new models and types of mobile phones are being
developed and marketed. The new models are smaller and able to handle more
complex task, they are now offering more and more options to do things on the
go. Now this brings up a question, how have these
changes in supply and demand affected the equilibrium price of this product? “When a market is in equilibrium,
the price of a good or service tends to stay the same. Equilibrium is the price at which the quantity demanded by
consumers is equal to the quantity that’s supplied by suppliers. When either
demand or supply changes, however, the equilibrium price and quantity will also
change.” (Nash)

            Inclusion, the supply and demand for
the next new thing will never go anywhere. The equilibrium of the market price
fits the supply and demand. There will necessarily be a change in the supply or
demand for this product. It will just continue to grow more and more. The more
options that come out with this product will just cause the demand to affect
the supply. Communication is a reality that will not go anywhere because generation
after generation is going to need technology more and more. Phones lead the way
when it comes to invention of technology. So, the demand will continue to grow
more and more.