Project on Global PC Market

This is a case study on Dell's shift to China for its component suppliers and PC buyers. It consists of the answers to several guiding questions which are included in the essay.
1.Model the global market for personal computers.
Demand
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.
Still, with other things being equal, the demand will decrease with increasing price as the Law of Demand suggests. However, most of the time, the percentage change in price will be larger (in absolute value) than that in the demand.
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