As the public's dependence on cell phones continues to grow, the cost of the phones may be decreasing, but the stronghold that telecommunication companies have on the public in regards to contracts and climbing fees is alarming.
Additionally, all cell phone companies charge about the same prices, and the consumers do not have much choice in substituting providers. Consumers appear to need some controls in this regard, and the government decides to step in.
What is the effect of government intervention in the cell phone market? Make sure that you use graphs to illustrate your point. Is this a good thing for consumers?
On the other hand, the government sees the increase in cell phone use as an opportunity to make some additional revenue, and it decides to tax service providers.
Who is really paying the tax?
Illustrate your conclusion on a graph.
Do you think that there is a free market for cell phone users? Why or why not?