Identify a good or service with which you are familiar What

Identify a good or service with which you are familiar. What factors have contributed to changes in the supply of and demand for that good or service? What was the effect on the equilibrium price and quantity? How do you expect changes in the microeconomy and macroeconomy to affect future supply of and demand for that good or service? Do you expect the equilibrium price to increase or decrease as a result?

Solution

Let us consider the example of Landline Telephone Service. Demand of Landline Telephone services was huge in 19^th century when, means of mobile communications were unavailable. The demand of landline telephone services started to drop as soon as the mobile telephone services got invented. During the initial few years of introduction of mobile services, the landline telephone services were still being used widely. But as soon as the technologies grew and mobile services became compact (micro mobile phase), the demand of landline telephone services dropped sharply. Another reason that impacted the telephone services was electronic mail services.
These days, cable and satellite television service providers are now offering or requiring landline service as a inexpensive add-ons to their other offerings. Equilibrium price and quantity have also dropped, as the almost free communication alternatives such as Skype, Vonage, MagicJack are available. Facsimile lines have been replaced by electronic fax services. Pay phones have almost been eliminated in such a way that their existence will be doubtful in years to come. Credit card machines requiring landlines are being replaced by card readers for cell phones.
People who do choose not to have a landline are unlikely to return to the service. In time, it can be expected that land telephone service will be compared with telegraph, a technology that can be referred to in history books. In spite of Cellular service being more expensive than land service ever was, even with recent drops in pricing, wireless carriers are generating substantially higher revenues for communication services because of the conveniences such as compactness and facility to carry these phones anywhere along. People have been spending much more on communication hardware and service than they were with landlines.
When lower cost alternatives will be easily available, revisions in service will be sought. The micro-economic impact is the fact that one has to spend more to raise a family now than a few decades before. The macro-economy sees huge sums paid monthly for an annuity service and for hardware purchases, and other vendors will look to find the cheaper alternatives. The success of the cellular phone model have huge impacts on macro-economics such that consumers will pay notably more for a service they demand.
The equilibrium price for landline service will continue to decline as the new technologies will be introduced. The price and quantity will as well decline as demand for landlines continue to decline.