Do the laws of supply and demand apply to technology, computers, and electronics?
Technology is not immune from the basic economic laws of supply and demand. Technology is an interesting economic study because it has such a short generation timespand. It is not just the supply of an item that is part of the supply and demand equasion. Computers improve every 6 to 18 months. You could have a huge or small supply of computers, but if a new and better version hits the market, the demand for the older technology will drop off swiftly. Supply and demand is a general rule of economics. Each sector of the economy has its own fluctuations with regard to this general rule. Technology is affected by supply and demand, just like everything else in the economy.
