Apr
13
Technology
Filed Under (Inflation, Money Making, Recession, Technology, Uncategorized) by ravi on 13-04-2009
With economics technology plays a big part in supply. In economics the acronym ROTTEN represents all factors that are able to shift the supply curve of the supply and demand graph. The acronym ROTTEN stands for:
Resources
Other goods
Technology
Taxes / subsidies
Expectations
Number of sellers
I like to focus on technology because that is what is pushing the price down of many items that are being sold today like Jump drives. The flash memory industry is starting to lose money because so many competitors have entered the market because of low barriers to entry and therefor a price war is going on… a.k.a. dumping. Of course this is all part of the market and eventually a equilibrium price will be met and all will be balanced.