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

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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.

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