Supply_and_Demand_Paper

Supply and Demand Paper The topic that I chose for this paper is computers. The reason for choosing this topic is because there are different types of computers out there and the prices of these computers change on a daily, weekly, or even a monthly basis. The demand for computers is not as great as it used to be but people are still upgrading on a regular basis that if certain computers are not on the shelves then people will go to other places to make his or her purchases. The factors that I can think of that would cause a supply and demand with computers would be, company going out of business, not having the item in stock, unable to purchase this item online, and prices of this item going up. All these factors take place since stores like Best Buy, Wal*Mart, Staples, etc. that would carry these types of products. Without having the product in stock or available online it will force a person to go to another store to buy the product that he or she is looking for. If a company was to go out of business then the demand for that product might go through the roof. I say this because without having a place to send a product back to one would not be willing to buy a product knowing that if something happens that there is nothing that can be done about it. The person would be stuck with this product that does not work and no way of getting it fixed. The other factor that I had mentioned was price. This takes a huge factor since the prices of computers vary at different times. The demand for computers goes up more when students go back to school. Thus making stores up his or her prices on the computers that are being sold. But prices also vary at different times of the year as well. Just before Christmas or on black Fridays. One would wither lower the prices or make it look like a good deal by taking so much off yet he or she has upped the price of the computer. The two substitutes that I can think of for a computer are blackberry phone or an IPad. Both of these items can access the internet it makes it easier for a person to get emails, updates on items, etc. Although the screens can be small and harder to read, it does make it possible for a person on the go to get things done at the touch of a button. It also allows a person to not have to carry around a laptop. This allows a person to not have to stop and get set up with a computer as well. It saves time and even money when it comes to travel. The two complements that I could think of for computers are storage and being able to use them when it comes to presentations. The reason for this is because with having a cell phone or other device it does not give as much storage space as a computer would. But this also goes more towards laptops since they are portable and easier to bring with one from place to place. Yes, cell phones and IPads are portable as well but can only carry so much data. When one needs to present a presentation it is hard to do this with a phone or other device. By having a computer present and with the right connection, a person is able to use the computer to give the right resources it would take to give this presentation. Although there are other ways to give presentations if a person wants to have to right information to give, they can always connect the computer up to the device being used to present the information. According to the reading, price elasticity of demand is when the quantity of demand for a good responds to the change in the price of that good. It is also computed as the percentage that changes when the quantity of that product is divided by the percentage in the change in price. When it comes to price elasticity of supply, this is when one measures how much the quantity supplied of the good responds to the change in the price and is computed as the percentage changes as the quantity is supplied and divided by the percentage of the changes in price. I would say that with this being stated that with computers it is hard telling just how the price of elasticity works with computers. It all depends on how many are sold, what they are being sold for, and the age group into which they are being sold. This is because the higher technology of computers would be more for the younger generation rather than the older generation. The older generation would be more into getting a computer that he or she would not have to carry around since there is much to them than a person of this age group would want to know about. If computers are being sold to the younger generation he or she is more apt to wanting to buy a laptop or something else that is portable. Since the younger generation is always on the go. So the demand for new technology is higher and one would want to spend more on something that he or she could carry with him or her opposed to keeping at home or school. One is willing to spend more money for a better machine rather than little money for something that is not going to keep up with him or her.