StudentShare solutions
Triangle menu

Computer Market - Essay Example

Nobody downloaded yet

Extract of sample
Computer Market

Likewise, there are many other determinants of demand for a computer market such as knowledge and price barriers, social influences, lifestyle changes, and competitor and component prices, and so on.
The world's second largest personal computer maker, Dell, launched its latest Inspiron 1525 laptop computer that features 15.4-inch HD definition wide aspect display with 720p resolution, a Blue-ray player disc drive and an HDMI port along with the basic features. Dell has been quoted as an example to guide through the learning of the economics of computer pricing.
Recent years have seen fall in prices of personal computers even in the face of increasing demand. To study this further, it should be kept in mind that demand and supply control prices in a free market and increase in the supply of a product over demand causes the price of the product to fall.
A free market can be defined as a market where the sellers and the buyers of a product are free to determine the price of the product and this is done by the law of demand and supply. Free markets are in contrast to controlled markets where factors determining prices are influenced by external parties. In a free market, however, the demand and supply for a product determines whether the price of the product increases or decreases. ...
Determination of equilibrium price and quantity
The determination of price depends on the type of market organization the product belongs to. In a competitive market, the point of intersection of market demand and supply curves determines the price that will prevail in the market. As in other competitive markets, the forces of demand and supply determine computer prices. In the diagram, P* is the point of intersection of the demand and supply curves and is called the equilibrium price.

"The word 'equilibrium' denotes a state of rest from which there is no tendency to change" (Maddala and Miller, 2004). Price equilibrium occurs where the price that the buyers wish to buy matches the price that the sellers wish to sell at. The point C in the diagram describes a position of equilibrium in the market. When prices are above or below P*, i.e., P1 or P2, the market is said to be in disequilibrium.

As can be seen from the diagram, supporting the price above P* creates an excess supply, whereas, fixing the price below that causes excess demand. Therefore, an excess demand would lead to an increase in prices whereas excess supply would lead to decrease in prices.

When the demand for computers is high and there is shortage of supply of the same, then the balance of power shifts towards the seller. This is because of the excess demand in the market for good commodities.
Conversely when demand both for computers and complimenting products is weak and when there is excess supply of the same available on the market, then the power switches to potential buyers. This is because there is a wide choice of products available and the buyers can afford to negotiate prices ...Show more


A free market is characterized by the application of the forces of demand and supply to determine prices of commodities. Simply put, when the demand for a product increases, the price of the product increases and vice versa. In a free market, the price is fixed at the point where supply meets demand, as shown in the diagram below:
Author : friesenwaldo
Computer Market essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Computer Market"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

An investigation into the impact of branding on growth of tablet computer for the UK market
On the basis of the literatures critically reviewed, the researcher believed that branding has helped growth of tablet PC market in the UK. To test this hypothesis, the researcher employed quantitative survey method using 60 respondents, and semi-structured interview method for the qualitative study.
56 pages (14000 words) Essay
Innovation and Change - Open Innovation and Strategy
Such innovation eventually replaces the original technology. In the context of technological development, any innovation is often as seen improvement to the present order of operations in the market. In view of these realizations, disruptive innovation is contrasted with sustaining innovation which seeks to create value and improve the existing products in the market without disrupting the market.
3 pages (750 words) Essay
Interactions of The Laws of Demand and Supply in the Personal Computer Market
The paper helps to provide an insight of the impacts of changing market condition on the prices of the products. Concept of free market economy suggests, that the market is not regulated by government policies for setting of prices of products. Operations of the laws of demand and supply in the personal computer market are analyzed..
7 pages (1750 words) Essay
To elaborate on this, I have presented anecdotes regarding how my friends and I decided to buy a computer to help us save manual work that consumed a lot of time and energy in the past; and, how computer enables people to connect with their long lost friends.
5 pages (1250 words) Essay
Critique a Paradox Market v Resources
However, researchers, over the period of time, have focused on the assumption that products and resources are basically the two sides of the same coin to judge the competitiveness of the firms. A closer look at the historical facts would suggest that the firm level competitiveness have largely been influenced by a dualistic approach of internal as well as external perspectives.
6 pages (1500 words) Essay
Computer Software
The languages used to operate the machine are called software. As explained earlier, software is a method of transfer of instructions from men to their machines, or computers. At the same time, this has to be written in special language and plain English is not good enough, and software experts are required to write down these instructions.
4 pages (1000 words) Essay
Personal Computer Industry
Economic theories, together with different strategic management tools will be very essential in unveiling these market forces. In line with this, this report will look at the factors which drive the growth, demand, trends, and development in the market for personal computers in the United States.
8 pages (2000 words) Essay
Computer games
Life attained a different definition as even activities for entertainment and leisure went through a great commotion with the appearance of radios,
3 pages (750 words) Essay
Competitive Analysis & Marketing Strategy for Dells Computer
This is in comparison with its competitor, Hewlett-Packard, which had approximately 15% of the world’s personal computer market share. In the last period of the
2 pages (500 words) Essay
Market Analysis
Of course, online players purchase video and computer games, but the market of online gaming should be treated separately from video and computer market (Amazon, 2009). The
4 pages (1000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us