Supply and Demand: Buying a Computer

1200 WordsApr 5, 20125 Pages
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…show more content…
At the end, it told me the cost of my laptop was $1200. I knew that was way out of my budget. So I started asking around and doing some research and found the HP laptops were just as reliable as Dells. The HP laptop had all the same specifications as the Dell, nearly identical to the Dell for 1/3 of the cost. Both companies offer incentives and compliments for their computers. You can purchase a printer at the same time for a discounted price, ink for that printer, wireless mice and keyboards, software programs such as Microsoft Office and many others. For the price of a Dell laptop, there is no extra money for the printers and programs. However, because the HP price is less, you have extra money to spend on a new printer and accessories for your laptop. Because of the decreased price of the HP computer, the demand for software programs, printers, and other accessories for that laptop goes up. Had I not already had a nice printer, I would have bought one to go with the laptop. My HP laptop also came with no other programs installed, but because I didn’t have to spend a fortune to buy it, I had the money to go buy Microsoft Office, antivirus software, and some other software for personal use. Having so many substitutes and compliments makes for a good market and makes the price of HP laptops elastic. Unless you have a specific brand loyalty, it is very easy to switch from one brand to another if one

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