1. What are the possible factors affecting demand and supply of the said product in the market? Explain.

There is some possible factors that affecting demand and suppy of the LG G2 in the market. The factors that affect demand are called the Determinants of Demand.There are a few factors that can influence the demand.

The income that earn by the individuals. The sum of all a household’s wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. When the consumers’ incomes increase, they will purchase more luxury products such as expensive jewellery and smartphone. With their luxury purchase increase more rapidly than the increase in income. Products whose demand changes directly with income are known as normal product. For a normal good, when the income increase ,the demand will also increase, demand curve shifts right. There is some goods called inferior good which income have an opposite affect. Turnips and second hand goods are the example of inferior goods. For inferior goods, the demand will decrease as income increases, demand curve will shifts left. The living standard change while the income change.

Price of related goods. There is two types of product categories can affect the demand of the goods which is substitute goods and complementary goods. Substitute goods is can be consumed in place of one another. When the price of other substitute for LG G2 decrease such as Apple, Samsung and etc, The demand of LG G2 will goes up. This is because consumers tend to get a cheaper product with a good quality. Other words, when the competitors decrease their prices ,our demand will fall down due to the consumers behaviors. Besides, there is a complementary goods will affect the demand. Complementary good means goods that the goods must be use together such as smartphone and apps. A decrease in the price of apps results in an increase in demand for smartphone, and vice versa.