Forces of demand and supply of aphone Economics Term Paper (Term Paper Sample)

Market Demand and Supply of a Phone.
Due to advancements in technology, mobile phones have innovative functions which make it convenient for daily use. Demand can be defined as the human wants that are backed up by the purchasing power. Supply is the willingness of a seller to sell a product at a given price (Kim, 1971).
In the free market economy, the allocation of resources is mainly determined by the forces of demand and supply. Factors that influence the demand and supply of products keep varying. The price is the major contributor in the distribution of resources (Kregel, The Notion of Equilibrium in the Keynesian Theory, 12). In demand for a phone, the price is a great influencer. Individuals have different needs as far as a phone is concerned. Some people view it as a mere communication device. Therefore, they only use the basic operations, to call and to text. This category of people does not require updated mobile phones. Price becomes a fundamental element to them they would comfortably purchase a phone that is cheap priced. Conversely, there are a group people who need many applications on their phones due to their nature of work. They need the most up to date phone for convenient and fast use.