Supply and Demand: Buying a Computer
Buying a new computer is no easy task. Finding one with the right specifications at the right price requires shopping around for a good price, research on the different computers available, and evaluating if the decision is necessary and financially sound. In doing each of these things, we are using several Principles of Economics and studying the effects of supply and demand on different brands. For the purposes of this paper, we will look at things as if we are buying an HP laptop.
When you sit down and start deciding and figuring numbers to see if you can afford to buy a new computer, you’re deciding to make trade-offs. You think to yourself “Can I cut costs here and use that money towards a computer?” and you are considering the consequences of pulling money from savings. The whole time you are thinking about these things, you’re also thinking to yourself “If I can figure out how to get this computer, I can keep in touch with my family, go back to school, and do some online shopping to save some time and money. So you start researching different computers, looking for sales or shops that have lower prices than others. Without even knowing it, you are going through the motions of economic principles 2 “The cost of something is what you give up to get it” and 4 “People respond to incentives” (Jones, 2007). Both of these principles are important steps to buying a new computer. As with any large purchase, careful consideration must be made.
Supply and demand also makes a huge impact on the decision to buy a computer. Right now, the supply of computer is high, but the demand is low. Several factors such as available resources, the time of year, competitor prices, and a national income can affect both the supply and the demand for personal computers.
Resources to manufacture computer parts and therefore computers are abundant. There are many companies and factories out there that can produce the parts necessary to create a computer and factories are abundant.
When you sit down and start deciding and figuring numbers to see if you can afford to buy a new computer, you’re deciding to make trade-offs. You think to yourself “Can I cut costs here and use that money towards a computer?” and you are considering the consequences of pulling money from savings. The whole time you are thinking about these things, you’re also thinking to yourself “If I can figure out how to get this computer, I can keep in touch with my family, go back to school, and do some online shopping to save some time and money. So you start researching different computers, looking for sales or shops that have lower prices than others. Without even knowing it, you are going through the motions of economic principles 2 “The cost of something is what you give up to get it” and 4 “People respond to incentives” (Jones, 2007). Both of these principles are important steps to buying a new computer. As with any large purchase, careful consideration must be made.
Supply and demand also makes a huge impact on the decision to buy a computer. Right now, the supply of computer is high, but the demand is low. Several factors such as available resources, the time of year, competitor prices, and a national income can affect both the supply and the demand for personal computers.
Resources to manufacture computer parts and therefore computers are abundant. There are many companies and factories out there that can produce the parts necessary to create a computer and factories are abundant.
References: Jones, G. R. (2007). Introduction to Business How Companies Create Value for People. New York, NY: McGraw - Hill / Irwin.