Supply and Demand

Supply & Demand Paper
Monica S. Davis
XECO 212
January 30, 2011
University of Phoenix (Axia)

Supply & Demand Paper

There is one game system I know everyone wanted when it first was announced to consumers and that was the Wii. I know that everyone wanted this particular game system and my husband was part of rush. This new system was one that the entire family would enjoy from small children to adults to grandparents. My husband and I decided to purchase this system for our sons. We went to Best Buy to purchase the Wii but discovered it was sold. This meant that Best Buy did not meet the demand for supply on this game system; this game was one that everyone wanted but customers had to be quick in their movement to purchase the Wii. With supply when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well (Gregory Mankiw, 2007). With demand, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises (Gregory Mankiw, 2007).
I am sure we have experienced this with a lot of things we like to purchase such as certain eye makeup, or a favorite brand of golf clubs. One main factor with the purchasing of the Wii was the price. When this game system was first introduced to the market the price was $249 and now you are able to purchase it for $199. Since the price went down to $199 I would take that as the demand not being as high as it was when it first came out. Another reason for demand decreasing was because when the Wii first came out there were not a lot of games for this system. I believe this was a big problem for Nintendo because most customers want games to go with their new game system. If you have no games to play you will not play with your new system. Another example of supply and demand would be customers waiting for the price to come down, because of the current state of the economy all consumers...