Project description
Most of the cell phones sold in the US are IPhones or Android phones. Some people view them as close substitutes in consumption (ie, the phones are not exactly the same but provide similar services), but others are loyal to one of the types and do not view them as close substitutes. Which type of phone do you use, and do you view the other type a close substitute? Recently, Apple introduced the IPhone 6 that has a larger screen, better resolution, and new services. How should this product introduction affect the demand curve for Android phones? What is the expected impact of this event on the equilibrium price an quantity in the Android market?
