Supply and Demand

Supply and demand trends are very important for any industry. Of course both trends affect each other; if only a small amount of products are produced throughout the industry, a company can hike the prices because there is not much competition. However, if there are various types of the product, the consumer will be looking for the lowest price which will cause companies to compete to produce an inexpensive but quality product. This blog will not specify one corporation but the information technology (IT) industry as a whole and various factors that affect the supply and demand curve.

Information Technology’s supply and demand curves probably have the most fluctuation due to competition, technology advancements, and consumer probability. “Expanding power and declining costs enable new and more extensive applications of IT, which makes it possible for organizations to improve their efficiency and effectiveness” (Turban). In recent years the supply curve has shifted to the left while the demand curve has shifted to the right. This shift has occurred because of the accessibility of the technology and the various brands.

There are several large corporations that rule the IT industry such as: Google, Apple, Yahoo, and Microsoft to name a few. Corporations such as Google, Apple, and Microsoft has merged into different markets; making the supply and demand curve shift. These corporations produce many similar products making them either substitution or complimentary products; which in turn also affects the supply and demand curve. Due to the economy, consumers’ incomes have changed drastically in different directions. Some consumers may not be able to afford luxury items that companies like Apple produces; however, some consumers may and it is considered a normal good. The income factor affects the demand curve the most.

As stated before, the supply and demand curve is very essential for any industry. There are many other factors that affect the curves that were not discussed in this blog; however, these are the most common factors.