Supply & Demand

Supply and Demand Paper

By: Amy Proto

June 10, 2012

XECO 212

Principles of Economics

The purchase of a new computer was an experience that was very difficult for me. At the time there were many options for what I was looking for. Knowing the various brands and varieties, laptop, desktop, Hewlett - Packard, Sony, or other brand, gave me so many choices. I on the other hand had a good idea of what programs I wanted and the type of keyboard set up wanted. The choice became endless, I needed to take my time and research the different products whether it be going to the stores in person or searching on line.

There are multiple factors that could change the supply and demand for purchasing a new computer. The first one that comes to mind is newness. One can purchase a new computer, but it may an older model. I had made the choice to purchase a laptop for the convenience factor, and I had also seen the advertisement on TV for the Sony Vaio light weight that was just about to be released. I told myself that that was the one I wanted. It had everything that I was looking for, but when went to make the purchase at the retail store the price was more of a deciding factor then the newness. The price was about $500.00 more then I could afford. The Sony Company knew that they would have a low supply of these laptops at first release so the price was higher then other laptops. This being the supply and demand, once people saw the higher price the demand factor went down, which in turn caused the price to eventually come down as well.

At the time the Sony Vaio was the top of the line laptop. Having all the conveniences and programs that I was looking for in a laptop. So now knowing that this was out of my price range I looked at other options. These other option included the Hewlett-Packard Pavilion, Dell, and the Toshiba brands. Again the Dell was still out of my price range, I eliminated that option. Next just comparing the Hewlett- Packard and the Toshiba....