You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. The task at hand is to graph the supply and demand curves in Excel using the values given in the table below.
Import the graph into a Word document and address the following.
- Identify the firm’s equilibrium price and quantity in the market.
- Calculate market shortages and market surpluses given the values from the graph based on the prices set by TOF. Be sure to define a market shortage and a market surplus.
- Identify and discuss the price TOF should charge for its cellular phones.
- From the graph derived, illustrate producer and consumer surplus. Please determine both producer and consumer surplus.