The determinants for this article is for the demand is the number of buyers.

The demand for

mobile operators such as Bharti Airtel, Indonesia`s Telkomsel,Thailand`s Advanced Info Service
,The Philippines` Globe Telecom and Pacific Bangladesh Telecom had a strong quarter for 2013.
Singtel`s combined regional mobile customer base rose to 6% to 477million customers. On the
other hand, for the supply its the price of relevant goods because from the article it states that
SingTel`s net profit increased from the precious year on strong contributions from regional
associates and lower costs.








The demand for mobiles and internet and also basic mobile necessities rose and purchases for it
increased.







Supply increases because of the stronger contributions from regional associates and lower costs
which directly affect the supply produced because of the lower costs which make it easier for the
company to produce more commodities.









The Normal Case
The demand function for a market is the relationship between the price of the commodity and the
quantity of it demanded. Likewise the supply function is the relationship between the price of the
commodity and the quantity supplied. The demand and supply functions can be represented as
curves in a graph, such as shown below.






Let Peq and Qeq the price and quantity where the demand and supply curves intersect. Let D be
the demand function for the market and S the supply function. If P > Peq then the quantity
demanded is less than the quantity supplied, D < S, and the surplus results in the market price
falling. On the other hand if P< Peq then the quantity demanded is greater than the quantity
supplied; D > S; the resulting shortage causes the price to rise.
At Peq the quantity demanded is exactly equal to the quantity supplied and there is no tendency
for the price to change. It is the equilibrium price. The quantity demanded and supplied at that
price is the equilibrium output, Qeq.

Yes tax should be imposed on consumers if the goal is to reduce usage of mobile phones. If you
tax producers, it can have the effect of driving out smaller operators with lower margins and
reduce the effectiveness of the tax by allowing larger producers to offset some of the tax due to
less competition. By taxing consumers you can reduce the incentives to cut costs and consolidate
at the producer level.
The impact of exercising tax.
Suppose a tax of t is imposed upon the commodity and the tax is collected from the producers.
One's first expectation would be that the market price would increase by the amount of the tax, to
(Peq+t). In this case the producers would still be getting Peq and thus would supply the same
amount Qeq. But the quantity demanded at (Peq+t) will be less than Qeq and thus that could not
be an equilibrium situation. This shortage would drive the price down.





In the above graph Pt represents the price paid by consumers once the tax is imposed. Pt' is the
price received by the producers once the tax is imposed. The difference between Pt and Pt is
equal to the amount of the tax. The effect of the tax is to shift the supply curve, which is S
without the tax, to St. The shift is an upward shift by the amount of the tax, but the upward shift
is the same as a backward shift, a decrease in supply. As can be seen from the above graph, the
impact of the tax is an increase in the price paid by consumers and a decrease in the price
received by producers. Thus the consumers and producers share the burden of the tax. In this
case the burden of the tax is equally shared by the consumers and producers.













The combined loss in consumers' and producers' surplus is offset in part by the gain to the
government in tax revenue. But the offset is only partial; the loss to consumers and producers is
greater than the tax revenue gained.

Do the rich actually pay for the higher taxes? Technically, the answer is yes. But the reality is
that those costs are usually just passed on to other people or spending is restricted. Either way,
the effect is often big on the economy. Millions of small and medium-sized businesses fall into
the target zone for higher taxation. When you have many people and businesses involved in the
production, transportation, and distribution of products, and they are all paying higher costs, the
added costs built into the selling prices begin to add up for the end consumer. If a small business
is hit with higher costs due to an increase in fuel prices or raw goods, those increases are usually
just passed on to the consumers, and those with less disposable income see their costs rise to
sometimes devastating levels.
Consumers will be hurt initially by the tax due to the decreasing usage of mobile phones.
Workers will be impacted by a lower demand for the product initially, which could cause some
layoffs and wage concessions. But since it will extend the viability of mobile phones as a
necessity nowadays, those workers involved in specialization work would have the career
horizon lengthened. So some hurt some help.