What can cause the market supply curve for smartwatches to shift rightward (an increase in supply)?

Introduction to product

A Smart watch is a mobile device enabled with a touch screen display. It is a computerized wrist watch used to perform various tasks including calculation, translations, game-playing ,messaging ,health tracking etc, and is directly connected to internet. The device is enabled with different operating systems which support smart phones the user can connect their smart watch to smart phone and use various functions

Some of the smart watches functions as portable media players, music playback such as enabling FM radio audio and video files to the user through Bluetooth or USB headset. Some smart watches also use full mobile phone capabilities and also be used make and receive phone also through the phone calls.

Demand side of a smart watch in market :

The demand of product is directly proportional to price as demand increases , price also increases there are certain questions to determine the price of a smart watch such as

1.how many smart watches do consumers want to buy?

2.Affected by price of the smart watches

3. Affected by other factors, including prices of other goods

Demand schedule :A table that shows the relationship between the price of the product and quantity of the product demand

Demand curve: A curve that shows the relationship between the price of the product and quality of product demand

Quality demanded : the amount of a good or service that a consumer is willing and able to purchase at a given price.

Shifts in the demand curve:

A change in something other than price that affects demand causes the entire demand curve to shift

· A shift to right that is D1 to D2 is an increase In demand

· A shift to the left D1 to D3 is a decrease in demand

As the demand curve shifts the quantity demanded will change even if the price doesn’t change,

The quantity demanded changes at every possible price

Factors influence market demand:

1.Income: increase in income increases demand if product is normal, decreases demand if product is inferior.

2.Price of related goods: increase in price of related good increase demand if products are substitutes, decrease demand if product are complements

3.Tastes

4.Populations and demographics

5.Expected future prices

Supply side market:

There are some similarities and some differences between the demand and supply sides of market

in supply side we examine the market supply that is the decisions of firms about how much of product to provide various prices

supply :

supply schedule: a table that shows the relationship between price of product and quantity of product supplied.

Supply curve: a curve that shows the relationship between price of product and quantity of product supplied.

Quantity supplied: the amount of good or service that a firm is willing and able to supply at given price.

Shifting the supply curve:

A change in something other than price that affects supply and causes the entire supply curve to shift

· A shift to right S1 to S3 is an increase in supply

· A shift to the left S1 to S2 is a decrease in supply

As the supply curve shifts the quantity supplied will change , even if the price doesn’t change

The quantity supplied changes at every possible price

Factors influence market supply:

1.Price of input

2.Technological change

3.Price of substitutes in production

4.Number of firms in market

5.Expected future prices

Market equilibrium: putting demand and supply together

Market equilibrium is a situation in which quantity demanded is equal to quantity supplied , there are 25 firms selling smart watches so we can assume that is enough to generate competitive behavior in the market for smart watches.

Here we are considering market equilibrium by taking price 0- $500 on y-axis and quantity of smart watches( per week )

Considering price at $350 consumers want to buy 5 million smart watches and producers want to sell 5 million smart watches. And we say equilibrium price in this market is $350 and the equilibrium quantity in 5 million smart watches per week.

Consider what if the price were $400 ?

At a price of $400 consumer want to buy 4 million smart watches , while producers want to sell 6 million.

This gives a surplus of 2 million smart watches : a situation in which quantity supplied is greater than quantity demanded .

Bibliography:

https://www.slideshare.net/KenMathews/smartwatch-market-forecast-2021-brochure

https://www.slideshare.net/gauravhtandon1/demand-and-supply-79160489