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    Computers in China Demand & Supply Case Study

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    ahmed Hammoud
    The document discusses the market for computers in China. As incomes rose in China, demand for computers increased, shifting the demand curve to the right. However, the thousands of Chinese characters presented problems for keyboards. But new technologies like voice recognition increased the supply of keyboardless computers, shifting the supply curve to the right as well. The new equilibrium saw both an increase in quantity and price of computers sold.

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    Computers in China Demand & Supply Case Study

    Uploaded by

    ahmed Hammoud
    537 views10 pages
    The document discusses the market for computers in China. As incomes rose in China, demand for computers increased, shifting the demand curve to the right. However, the thousands of Chinese characters presented problems for keyboards. But new technologies like voice recognition increased the supply of keyboardless computers, shifting the supply curve to the right as well. The new equilibrium saw both an increase in quantity and price of computers sold.

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    The document discusses the market for computers in China. As incomes rose in China, demand for computers increased, shifting the demand curve to the right. However, the thousands of Chinese characters presented problems for keyboards. But new technologies like voice recognition increased the supply of keyboardless computers, shifting the supply curve to the right as well. The new equilibrium saw both an increase in quantity and price of computers sold.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    537 views10 pages

    Computers in China Demand & Supply Case Study

    Uploaded by

    ahmed Hammoud
    The document discusses the market for computers in China. As incomes rose in China, demand for computers increased, shifting the demand curve to the right. However, the thousands of Chinese characters presented problems for keyboards. But new technologies like voice recognition increased the supply of keyboardless computers, shifting the supply curve to the right as well. The new equilibrium saw both an increase in quantity and price of computers sold.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Computers in China

    Demand & Supply Case Study


    Group 4
    • Ashhab Ahmed Ashhab
    • Omar Gamal Abdel-Nasser
    • Ahmed Abdel-Aal Elhoot
    • AHMED SAMIR HAMMOUD
    • AHMED GAMAL SOROUR
    • MOHAMED TAREK ELDEEB
    Case Study
    3. As China opened its markets to the world, per capita income has
    risen in China and more and more Chinese have wanted to purchase
    computers. The more than 13,000 traditional Chinese characters,
    however, have presented an enormous problem for a Chinese-character
    keyboard. Few exist; they are complicated and difficult to use. With
    improved voice and handwriting recognition technology, firms have
    developed keyboardless computers for the Chinese market. Market:
    Computers in China.
    Chinese Language & Chinese Keyboard
    The Evolution of Chinese Writing on
    Computers

    ZHUYIN
    PINYIN Predictive text
    CANGJI sound-based
    English Proficient Formal writing for the Word Built-In Writing
    Traditional Chinese Keyboards With Speech To Text
    only romanization Chinese language Recognition
    Chinese basic Next Word
    system for Chinese
    Characters More advanced All Sentence
    Characters
    Phonetics
    Keyboard-less Laptops
    Five Steps
    • 1.Draw a demand-supply diagram and label the axes with the price and quantity of the
    good or service in question.
    • 2. Think about the events that you are told occur and decide whether they change
    demand, supply, both demand and supply, or neither demand nor supply.
    • 3. Do the events that change demand or supply bring an increase or a decrease?
    • 4. Draw the new demand curve and supply curve on the diagram. Be sure to shift the
    curves in the correct direction—leftward for decrease and rightward for increase. (Lots
    of students want to move the curves upward for increase and downward for decrease
    —works ok for demand but exactly wrong for supply. Emphasize the left-right shift.)
    • 5. Find the new equilibrium and compare it with the original one.
    • It is critical at this stage to return to the distinction between a change in demand
    (supply) and a change in the quantity demanded (supplied). You can now use these
    distinctions to describe the effects of events that change market outcomes.
    Step 1: Initial Market Equilibrium
    • the market equilibrium, the price at which quantity demanded equals
    quantity supplied.
    • No shortage or surplus of PCs.
    • At the equilibrium price, buyers’ plans and sellers’ plans agree and the
    price doesn’t change until some event changes either demand or
    supply.
    Step 2 : An Increase in Demand
    • As the per capita income has risen in China and more and more
    Chinese have wanted to purchase computers thus the demand
    increases and the demand curve shifts rightward.
    • At the Step 1 price, there is now a shortage.
    • The price rises, and the quantity supplied increases along the supply
    curve.
    Step 3: An Increase in Supply
    • As with improved voice and handwriting recognition technology, firms
    have developed keyboard-less computers for the Chinese market thus
    the demand increases and the demand curve shifts rightward.
    • At the Step 2 price, there is now a Surplus.
    • The price falls, and the quantity demanded increases along the
    demand curve.
    Summary
    Increase in Both Demand and Supply
    • An increase in demand and an increase in supply increase the
    equilibrium quantity.
    • Generally, The change in equilibrium price is uncertain because the
    increase in demand raises the equilibrium price and the increase in
    supply lowers it.
    • In this example, it is supposed that the increase in demand is still
    higher than the new increase in supply, thus the final equilibrium
    price is higher.

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