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Project on Global PC Market.
1.Model the global market for personal computers.
In current world market, it is only reasonable to consider PC's to be an essential commodity for the average house hold. This would mean that people would still buy computers despite higher prices and not buy more in the case of lower prices.
Therefore, we conclude that the demand for PC's is not overly sensitive to price changes and is relatively inelastic; hence the steeper demand curve. The fact that we consider the PC market as a whole group and not a particular brand or a subgroup of PC's, further justifies this conclusion.…
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- Project on Global PC Market.
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