• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Decrease In Supply of Playstation2

Extracts from this document...

Introduction

Commentary #01 Silvia Panico October 24, 2000 Section Covered: 01 Word Count: 436 Mike Musgrove, (10/20/00), Supply, Demand and Playstation2, Washington Post, E1-13 Decrease In Supply of Playstation2 This article entitled Supply, Demand and Playstation2, talks about a new game console which should be released in stores the 26th, October. Sony Computer Entertainment Inc. is expecting, by releasing 1 million consoles only in the United Sates, a complete sold out by the first weekend. But now, because of a missing part (supply shifter), Sony is forced to reduce that figure in half. Experts are also expecting 4 million customers in the USA who are going to want to purchase the new Playstation2 right away. ...read more.

Middle

In this case we will see a decrease in supply which will shift its curve to the left. This movement is created by the fact that the point where the Playstation2 production is now, is not included on the curve because if the supply quantity would be going down the price would have to decrease instead of remaining constant . Demand, instead, will remain constant, in fact changes in prices are included on the curve, so it will not shift. We can notice that this creates a new equilibrium point ( Fig. 1), but because Sony is not increasing its prices for each console, it will not be able to meet it. ...read more.

Conclusion

So by increasing the price, the shortage would be reduced. In conclusion to keep the shortage as small as possible, the price of each Playstation 2 will have to rise until an equilibrium between the supply and demand curve is reached. In this case, even though the demand will not be met immediately on October 26th, Sony promises that more consoles will be produced this upcoming weekend, so that the 4 million customers will be able to purchase a Playstation2, maybe not this Thursday, but sometime in the next month. Because the production will not stop, the prices will not have to increase so much to the point where no one will want to buy the product anymore. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. BTEC BUSINESS UNIT 2

    This ensures that popular events are noted - and probably repeated - whereas unpopular ones are reviewed and improved. Dealing with grievances All of the staff grievances are recorded down for any future reference and this is done either informally or formally through Coca Cola Enterprises ' grievance system.

  2. Applied Business Unit 2 Coursework

    This lets the appearance of the advert down. It also does not have the opening and closing date for applicants of the job role which is not that important because old jobs are taken off the website. The last bad thing about this advert was that it did not show the type of placement.

  1. unit 2 recruitment in the work place

    A job description would be produced by the business by looking at the work carried out by the previous worker, writing up all the skills, responsibilities and type of work needed. Some of the main features of a job description would be: - A Job Title: Outlining the occupation the qualification of the work.

  2. Unit 2 Investigating business

    I can work from the computers and the chefs will be using the laptops this ensures that there is plenty of communication between all staff members. Financial forecasts What a business plan is. A business plan is a set of documents which I would need to create so that I

  1. I am going to be writing about the concepts of marketing distinctiveness of the ...

    You might think this hotel is not organized and cannot take care of its customers. Even something as small as a pen can lose a customer and give their hotel a terrible image Blending the elements of the marketing mix The key to a successful business is blending the elements of the marketing mix the right way.

  2. Applied Business Studies

    Most importantly, the overall performance of the business must be at a high standard. Customers are external stakeholders. With my business 'Actors Vision', we hopefully meet our customer's needs. I try to be as fair as possible with my business, as I try to be fair but firm with the products I sell and the prices I sell them at.

  1. SunCity - developing marketing strategy for problem

    it is also not the most reliable way because people could lie s they are anonymous questionnaires however once they have read Howe important it is to be honest I am sure the majority of the customers will answer accurately and honestly.

  2. Aravind Eye Hospital - Case

    in the latter's office, Dr. V., was busy planning the day. After the preliminaries, he opened the conversation as follows: Despite all our efforts, so many people with problems with their vision have still no access to hospitals. Much of the blindness can be corrected through surgery.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work