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demand-supply graph

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I need the following questions answered about integrating ideas from the telephone industry specifically about AT & T. Analyze from both the Demand curve and Supply curve perspectives. Try to include a discussion of elasticity and the demand curve as well as type of market. Make sure you also include some history etc.

Specific questions that need to be addressed and graphed are the following:

1.How has the industry changed over time? 10 year gap 1990-2000 (125 words)
2.How has the market changed? 10 year gap 1990-2000 (125 words)
3.How has the elasticity changed? 10 year gap 1990-2000 (125 words)

Relate ideas from economics to the company or industry. Be sure to make it an economic analysis, and not a financial evaluation.

Choose your own sources but please cite them

Thank you

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Solution Preview

The following answer is based on annual reports from the Federal Communications Commission (FCC) available at


The numbers that I have used in the answers below are from the above report.

To understand the workings of the mobile telephone industry it is important to understand how things have changed over time particularly in terms of the technology. This is important because with technical development it becomes cheaper to provide mobile telephony service, and the cheaper it becomes the more people want it. You are asking here about a period that is about 10 years old, and therefore, some results might seem surprising.

Mobile phones were introduced on a commercial level in the US by Ameritech in 1983, and the first year you need (1990) is very early in the adoption of the technology. The US had less than 100000 subscribers in 1985, and it took another two years to get to 1 million. Usage started to blow up soon after.

1. To put it in economic perspective we can look at the way the industry demand and supply has changed over time. ...

Solution Summary

A demand-supply graph is modeled. The telephone industry and AT&T are determined.