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

Economics Commentary #1 Patent Lawyer Demand Rises Following U.S. Legislative Overhaul Bloomberg, Oct. 8, 2011

Extracts from this document...

Introduction

Yuliya Pakhilka IB Economics Page IB Economics Commentary #1 ?Patent Lawyer Demand Rises Following U.S. Legislative Overhaul? ? Bloomberg, Oct. 8, 2011 Word Count: 601 Due: October 17, 2011 IB Syllabus Section II Yuliya Pakhilka ________________ The extract explains how the quantity demand for patent lawyers far surpasses the quantity supply of patent lawyers. Quantity demand is the want, ability, and willingness of consumers to purchase a good or service. Quantity supply is the amount of a good or service that a seller is willing to sell at a specific price. The service that the extract describes is that which is provided by a patent lawyer, preferably one with a degree in engineering or computer science as well as at least four years of experience in a strong law firm. ...read more.

Middle

The high price and low quantity result in a very high equilibrium, or the optimum price and quantity of a good or service. The demand for a patent lawyer is directly proportional to the advancements of technology. To keep up with demand, more patent attorneys and patent agents are being hired; however, a law firm cannot just produce 100 new attorneys to keep up with client needs, making this a service with low supply elasticity. A low supply elasticity means that one will only see significant changes in supply during the long run, which is a period of time long enough for companies to enter or leave the market. ...read more.

Conclusion

Many of these advancements may also increase the productivity of manufactured goods, allowing sellers to produce more products for the same cost. This will cause the equilibrium price to decrease, benefitting buyers. Basically, once the shortage of patent attorneys is cleared (where there is neither a surplus nor a shortage), the entire market, in theory, will benefit. The winners in this situation are the patent lawyers, inventors, and anyone that would benefit from an increase in technology. The losers in this situation are the other types of lawyers and the workers that an increase in technology would replace. In the long term, an increase in patent attorneys will be noticeable due to the fact that more individuals will want to fill the 12% gap in supply and demand. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics 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 International Baccalaureate Economics essays

  1. IB Economics Commentary - Australia MPs Pass Carbon Tax The Guardian October ...

    The community surplus is not maximized due to the effects of pollution, since it is causing a negative consequence. One way government policies may counter the problem is to tax the firm in order to increase the firm's private costs.

  2. Extended Essay Economics

    The term 'red tape' refers to excessive regulation by a government that is often redundant and bureaucratic. Many of CADIVI's policies which require excessive paperwork and obtaining licenses could be considered too redundant. These processes do hinder a company's ability to make decisions or take actions in an expedient manner.

  1. Old IB Questions

    By contrast, firms that are less able to achieve consumer loyalty for their product, and whose product is less differentiated from substitutes, may have to rely more on price competition (in other words price reductions) in order to increase their sales and market share.

  2. Macro Economics Notes

    SR keynes Monetarist Average AS Average AS Prices Prices Real GDP Real GDP LR keynes compromise Average AS Average AS Prices Prices Real GDP Real GDP Shifts in AD and AS - Caused by ? AD shifts are caused by Changes in tax rates and government spending (fiscal policy)

  1. Growth and Development Problem Set - IB Economics exam questions and answers.

    Human Development Index (HDI) and Human Poverty Index (HPI) are two of the composite indicators we are focusing on. HDI is a summary measure of human development and measures average achievement in three dimensions: (i) a long and healthy life, measured by life expectancy at birth; (ii)

  2. case study economics

    As NHS is a government funded subject, it is actually just a free service at the point of delivery. The taxpayers pay for this good; therefore it does have a market value indirectly through taxes. And it is not a resource that is available all the time, thus making it limited and not scarce.

  1. Economics Essay on Supply and Demand and the operation of markets.

    In the world of economics, the two most influential factors, which would be supply and demand, won?t always lead to the optimal allocation of resources. Reasons for market failing can occur in numerous ways, as the world is not completing ideal and therefore the government intervenes to some degree.

  2. IB economics commentary - Demand and Supply

    increase in vegetable and fruit prices, reaching LE10 for a kilo of tomatoes while green beans are sold at LE16 per kilo and apples at LE15. According to experts, the main reason behind this hike in vegetable and fruit prices is a shortage of supply resulting from a long hot summer which damaged the harvests of many crops.

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