Section of the syllabus the article relates to (choose the one that is most relevant): Choose one: Section 1: Microeconomics Section 2: Macroeconomics Section 3: International economics Section 4: Development economics Notes: – DC says that the PC market fell nearly 8 percent to 81. 6 millions units – Garnet says that it fell nearly 9 percent to 80. 3 millions There is a decrease in demand, because consumers prefer other products (substitutes). Law of demand: as the price of a product falls, the quantity demanded of the product will usually increase, coteries papyrus.
Substitution effect: if a price falls, it becomes more attractive for people to switch from other products. [Economics HAL] Internal Assessment (BIRR) By Dark_Lugging Cheaper tablet computers and smartness cut into demand” The price of the substitutes (tablets and smartness) is lower than the PC’s’ one. Graph: there is a shift to the left of the demand curve. Consumer surplus: An economic measure of consumer satisfaction, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service relative to its market price.
A consumer surplus occurs when the consumer is willing to pay more for a given product than the
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It is the “top line” or “gross income” figure from which costs are subtracted to determine net income. Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold. Article PC sales continue to fall as smartness, tablets cut demand Worldwide shipments of personal computers fell in the third quarter of the year, the sixth straight quarter of decline as cheaper tablet computers and smartness cut into demand, according to market research firms DC and Garnet Inc.
DC said the market fell nearly 8 per cent, to 81. Million units, while Garnet put the decline at almost 9 per cent, to 80. 3 million. The two firms define PC’s slightly differently. DC expects that the PC market will hit bottom sometime next year, with a recovery starting in 201 5 as companies and consumers finally replace aging PC’s. Garnet says this year will be the worst, with flat shipments next year and single-digit percentage growth in 2015. There’s sort of a rubber band effect where PC’s that need to be replaced will be,” said DC senior analyst Jay Chou. Garnet principal analyst Mikado Gateway said that in plopped countries, consumers won’t abandon PC’s, though they are holding onto them longer and spending money on other gadgets before replacing them. “The overall market size will shrink, but at some point those old PC’s will be replaced by new ones,” she said. The U. S. Market emerged as a bright spot in both reports. DC said the U. S. Racket was almost unchanged, while Garnet said it rose 3. 5 per cent. Helping boost demand. DC said falling prices of touch-screen laptops also helped. Hewlett-Packard Co. , the world’s No. 2 PC maker behind Leno, mirrored the outlook for a stabilizing PC market. In a presentation before analysts Wednesday, the company predicted “stabilizing revenue declines” for its upcoming fiscal year, which starts in November. The top 3 PC sellers Leno, HP and Dell all grew shipments between zero and 3 per cent during the quarter, thanks in part to a healthy U.
S. Market, both research firms said. Acre and Sass suffered steep declines. DC said Acre and Sass suffered declines of about 34 per cent, while Garnet pegged the drop at nearly 23 per cent. DC said Acre suffered from weak consumer spending while Sass was hurt by a lack of corporate customers. Commentary This article talks about the sales, or more precisely the shipments, of personal computers that fell down by 8/9 percent in the last financial quarter.
We can mark that the quantity demanded, the total amount of goods (in this case, the total amount of PC’s) that are demanded, decreased. The cause is related to the substitute goods: these are goods that one might easily use in place of another Indeed, people prefer tablet computers and smartness instead of the traditional computers. So, if we represent the PC’s market in a diagram, we will see a shift to the left of the demand curve.