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Read the article. How important are cellphones in our lives right now? Do you ever see them becoming a necessity? Explain

Read the article. How important are cellphones in our lives right now? Do you ever see them becoming a necessity? Explain

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter16: Externalities, The Environment, And Natural Resources
Section: Chapter Questions
Problem 2DQ
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Read the article. How important are cellphones in our lives right now? Do you ever see them becoming a necessity? Explain.

94 CHAPTER 5 APPL ICAT IONS O F DEMA ND A ND SUPPLY Going Wireless The mobile phone is bringing about changes to society as profound as those introduced by the automobile. -Timo Kopomaa, sociologist, Helsinki University of Technology Some facts about cellphones as of December 2000: •One in four Canadians has a cellphone. • The number of users in Canada is increasing by approximately 4700 per day. • In Finland, 70 per cent of the population owns a cellphone, in Britain, 60 per cent, and in Japan, 40 per cent. • By 2003, global sales of cell- phones are expected to triple. • The next generation of cell- phones will combine data stor- age, Internet access, and voice and image communication. Source: Chris Wood, "The Cell in Your Future," Maclean's, 4 December 2000, 34-40; Barry Came, "Wireless Nation," Maclean's, 4 December 2000, 41-44. Chapter Goals QUESTIONS By the end of this chapter, you will be able to • understand, calculate, and apply a concept known as elasticity to consumers and sellers, 1. Do you own a cellphone? If so, why? If not, do you plan to buy one in the future? Why or why not? 2. How important are cellphones in our lives right now? Do you ever see them becoming a necessity? Explain. 3. If demand for cellphones is increasing so much, why aren't prices? Draw a freehand demand and supply graph to illustrate what you think may be happening in the market. • identify how governments interfere in markets, and explain whether or not it is beneficial, • understand theories of consumer behaviour such as marginal utility and consumer surplus, analyze and debate the issues of rent controls and minimum wages. 4. Do you agree with the opinion in the quotation from Timo Kopomaa? Explain.
Transcribed Image Text:94 CHAPTER 5 APPL ICAT IONS O F DEMA ND A ND SUPPLY Going Wireless The mobile phone is bringing about changes to society as profound as those introduced by the automobile. -Timo Kopomaa, sociologist, Helsinki University of Technology Some facts about cellphones as of December 2000: •One in four Canadians has a cellphone. • The number of users in Canada is increasing by approximately 4700 per day. • In Finland, 70 per cent of the population owns a cellphone, in Britain, 60 per cent, and in Japan, 40 per cent. • By 2003, global sales of cell- phones are expected to triple. • The next generation of cell- phones will combine data stor- age, Internet access, and voice and image communication. Source: Chris Wood, "The Cell in Your Future," Maclean's, 4 December 2000, 34-40; Barry Came, "Wireless Nation," Maclean's, 4 December 2000, 41-44. Chapter Goals QUESTIONS By the end of this chapter, you will be able to • understand, calculate, and apply a concept known as elasticity to consumers and sellers, 1. Do you own a cellphone? If so, why? If not, do you plan to buy one in the future? Why or why not? 2. How important are cellphones in our lives right now? Do you ever see them becoming a necessity? Explain. 3. If demand for cellphones is increasing so much, why aren't prices? Draw a freehand demand and supply graph to illustrate what you think may be happening in the market. • identify how governments interfere in markets, and explain whether or not it is beneficial, • understand theories of consumer behaviour such as marginal utility and consumer surplus, analyze and debate the issues of rent controls and minimum wages. 4. Do you agree with the opinion in the quotation from Timo Kopomaa? Explain.
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