What High Prices for Tea and Coffee Essay Example | Topics and Well Written Essays - 1500 words

What High Prices for Tea and Coffee - Essay ensampleFrom this paper, it is clear that the quantity demanded will decrease from Q to Q1 causing the price to also fall from P to P1. However, contiguous month, when prices are anticipated to fall, people will spend more on mobile rings due to set out prices causing the demand curve to call forth on the right. This will result in an increase in the quantity demanded followed by an increase in price. A fall in the price of a adjure made from a mobile phone will cause the demand for mobile phones to increase the practice of mobiles will now become comparatively economical. Consumers will prefer mobile phones over other substitutes in this case, a landline is the closest substitute, due to lower prices of the call made from a mobile phone. This reassign will shift the demand curve to its right causing the quantity demanded of mobile phones to rise as shown in the graph above.Due to an increase in the price of a call made from a land line, the demand for landline phones will decrease. People will shift to cheaper alternatives, in this case, mobile phones. Since using the landline is now comparatively costly, people will tend to switch to mobile phones to avail lower prices. This mountain also be described as the relationship between substitute goods in which one prefers to shift to an alternative due to increase in prices of the existing commodity or service.Therefore, demand for mobile phone will again shift to the right as depicted in the diagram above. Yes, part (a) of this indecision illustrates the law of demand as the number of mobile phones demanded was solely affected by the decrease in the price of the mobile phone itself. Law of demand can be best described as the inverse relationship between the price of the good and quantity demanded.