DD202A

The issue relating to the demand and supply is considered as the heart of
this essay as well as I will illustrate instances that relating to the cell phone in the
all markets in the world in order to analyze the various changes in the prices,
quantity and the changes through the supply and demand curves.

The forecasting relating to the coming periods has massive effect on the demand
and supply curves. Some people may forecast of the iphone 7 will be decreased in
the coming period as a result of the big competition in from the famous companies
like Samsung brands as well as raising in the number of producers in the market.

We will illustrate the graph relating to the Supply and Demand during the
matter of lessening the price of iphone6.

S1

S2
P1

P2
D2

D1
Q

Q1 Q2

There are several foretelling which predicted by International Data Corporation

(IDC) relating to the prices which uncovered to change in the coming periods,
there is lessening in the sales relating to the cell phones at the domestic markets in

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 our country by 6 % in 2016. The market relating to the mobiles will lessen; this is
indentified as foretelling that performed via the global technology research. The
size of reduction ranges between 19 % and 22 % each at 2016. These predictions
have big leverage relating to the supply and demand curve as it is predicted that
buying relating to the cell phones will reduce at 2016. According to this issue, the
Qd relating to the mobiles will lessen and the demand curve will shift to left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1

Relating to the economic trend in our country, GDP depend on oil export by 95
percent. Therefore, we can notify that the purchasing power of the individuals in

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 Kuwait is relating to the circumstances of the prices that relevance to the oil. The
downfall in the petrol prices through the world impacted on the purchasing matters
in Kuwait. This downfall of demand relating to the cell phones, and the demand
curve relating to the cell phones shifted to the left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1

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 There are many Factors that leveraging on the demand

The individual demand curve composed of the prices relating to the buying of
specific quantities of products. (Robin Wells,2012)

The market demand curve is relying on number of individual demand curves.

1. Change in price

The changing relating to the prices can affect on Demand Curve.

400

385

370 D

Quantity
20 m 25 m

Relating to the operations of Apple firm, the top managers of it lessen the prices
relating to iphone6 in order to increase the demand on it. These leaded to increase
the demand from 25 million rather than 20 million.

Movement in the demand curve

The assumption of the prices is same, the demand curve will change. The
customers can purchase large or low quantities of products.

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 D2

D1

P1

QUANTITY

Q1 Q2

Diagram to show shift in demand

S
P1

P2
D2

D1
Q.S of tobacco

Q1 Q2

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Many factors affects on the demand curve:

Income: - the income is the items that identify the quantity of the products that will
be bought by the people in the market. The people will use the income in order to
purchase the desired products or purchase the desired mobile phone. the demand
for the phone will raise in the affaire of depending on large income. These will
resulted in shift the demand curve to the right. The financial reward in the job and
the overtime will support the income.

Quality: - high quality relating to the iphone 7 will support the demand of for it
because it depends on many features like high pixel of camera. These advantages
pushed the people to buy the iphone 7 and the demand curve increased.

The different individuals in the markets were encouraged in order to buy the cell
because the good marketing and advertising that promote the features of the
products and support the image of the product such as the Samsung Company
depended on wonderful advertisement “Marvel’s Avengers” as this adv played
by messi. These supported the demand of the Samsung firm.

Substitutes: - when the prices of the apple products increased, the demand curve
for the products of the Samsung was raise and shift to the right.

Complements: - the downfall in the prices relating to the complements. The

demand of the mobile phones will increase.

The forecasting about the price; the prediction about iphone 7s is increasing in its
prices in the future, this pushed the people to purchase it now. These supported the
demand of iphone 7s and shift to right.

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There are factors that leverage on supply of cell phones

Prices of related products: - this factor relate to the producer who produce the
mobile phone. According to the market, the prices related to the smart watches
raised. Thus, the apple preferred to produce smart watches more than iphone in
order to benefit from the increased prices in the smart watches. These leaded to
reduce the supply of the iphone and shift the supply curve to the lift. The supply of
the smart watches was increased and supply curve shift to the right.

Technology: - The high technology is considered effective factor in supporting the

supply of the cell phones because the high technology will lead reduce the cost of
production play effective role in minifying the cost of production such as the
technology that was used in order to produce iphone 6. These leaded to shift the
supply of the supply curve for iphone 6 to right side. (MBN ,2014).

Prices of inputs: - the product cost of the cell phone will increase if the prices of
the inputs increased and this will reduce the supply of the cell phone . iphone
depend on gold and platinum through the production. The prices of these
materials were increased, these leaded to increase the production cost of iphone
and reduce the supply of iphone. These leaded to shift the supply curve to left.

Expectations: - the supply of managers about the smart phone in the market will be
affected by their prediction about the future.

Number of sellers: the raising in producers of the cell phone, this will support the
supply and the supply curve will shift to right.

The Kuwaiti markets are considered place that demand more. This pushed the all
companies that produce cell phones to supply the Kuwaiti market with more
products in order to achieve more sales and high profits. The price is deemed as

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efficient that impact on the smart phones. The income affect on the purchase
decision in order to buy the demand of the cell phones. The price relating to
Galaxy Note 2 is only 200 KD, and the income of the people in Kuwait is KD 300.
These lessen the demand the note 2. And the demand curve shifted to left. When
Iphone 5 issued, these leaded to reduce the demand for the Galaxy S3.

At the end, we hinge upon the market of cell phone as good instance for purify the
mechanism relating to the demand and supply throughout the market. The supply is
relating to the cell phones leveraged via many matters and factors like the
innovation and high technique. The high innovation that relied by the apple firm
resulted to raise the supply of iphone. And the supply curve of I phone wills shift
to the right. The oil section in Kuwait is considered the most important sector in
Kuwait because the national income in Kuwait is mainly depend on the oil export
to the different countries in the world. The prices of the oil are decreased in these
periods. These leaded to negatively affect on the purchasing power of the Kuwaiti
people because their life style was affected by these reduction. this pushed new
entrants to enter in the market in order to offer cheaper products than the big
competitors like VSun, and Xtouch. These supported the satisfaction of the
people in the market.

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Reference

Austin Frakt PhD & Mike Piper CPA ,2014,Microeconomics Made Simple: Basic
Microeconomic Principles Explained in 100 Pages or Less

Denzil ,2015,Microeconomics,ISSN:9628-419-33

Jagg Xaxx ,2015,Factors Affecting the Market Demand & Supply for Mobile
Phones,visited in 04-12-2016, available at :

https://www.techwalla.com/articles/factors-affecting-the-market-demand-supply-
for-mobile-phones

MBN ,2014,What are market forces? Definition and meaning, visited in 04-12-
2016, available at:-

http://marketbusinessnews.com/financial-glossary/market-forces/

Robin Wells,2012,Microeconomics,ISSN:-963-857-13

William A. McEachern ,2013,Microeconomics: A Contemporary Introduction