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Factors That Determine The Demand And Supply Economics Essay

Nowadays, cellular phone having a plenty of innovative functions and applications that provides out a great deal of convenience to individual compare to the past. In this assessment we will more highlight in to the development of Samsung cellular phone from early on of the entire year until today's. In essence, the company was been found by Lee Byung Chul which is from South Korea at 1983. Samsung gadgets got launched their first mobile phone in 1988 at South Korea market. However, throughout that time the demand for this market was very poor and unpredictable. In 2007, Samsung electronics become second greatest mobile phone manufacturer on the globe and they got efficiently overtaking Motorola for the first time. Samsung was the world's greatest company of OLEDs. Because of the advanced and innovative digital world, Samsung acquired produce the first smart phone which is known as Samsung Galaxy S and its own launch in the March 2010 and become the top advertising smartphone in India market. This smart phone has build with the OLEDs display screen and have android software which significantly compete against another well-known smartphone which is call Iphone by Apple.

After the few years, Samsung had come out new model which named as Galaxy S2 and this model get best android device at the entire year of 2011. Alternatively, Samsung got launched another latest model which is Galaxy 3 in 2012 because of the innovative and upfront technology they have got. Samsung acquired received over 9 million preorders for this model among two weeks after the unveiling and it sold over 10 million devices in less than 3 month. Predicated on the above mentioned sales body, this prove that the demand and offer because of this model is a lot more above than others model.

Factors that Determine the Demand and Supply

There are some factors that can affect the demand and supply of Samsung cellular phone. The first one to impact the demand of the cellular phone is the purchase price. For different person they may have different view of the purchase price. For the majority of people, cellular phone is just a thing can connection with others, in order that they don't need new updated mobile phone. At this time, the decrease of the price may cause a rise of quantity demand, the demand is elastic. The second factor is the income of potential buyers themselves, is either their salaries can be manage to the cellular phone. For example, the price tag on Samsung Note 2 is RM2200, but the average income of these buyers is only RM3000 monthly, so that they won't give 73% of their salary to buy this mobile. Another reason of the shift in demand is the number of the buyers is there many people interested with the model. Samsung mobile has a big competition which is Iphone, it's like the first time Samsung S3 turn out people may be interested with this model, but after IPHONE 5 launched, they find themselves are more interested with the new Iphone 5, so the demand of Samsung S3 will reduce. This might also compete with own brand cellular phone, like S3 compete with Take note of 2.

The factors that can determine the supply of Samsung mobile phone likewise have some points. For the view of sellers the type price is a factor determines the source, the purchase price when the purchase price is higher, they can earn more. As we realize, whenever a new style of cellular phone first comes out, the price would be the highest period, in those days Samsung Company can have more benefits. By the decrease of the price, the benefits can be less and less, so that the source will also going down. The supply can also be inspired by the new style of Samsung cellular phone or the word of the model itself. Like Samsung Splus, after having a long term reselling this model, the business itself will certainly reduce the supply of this model. By the decrease of the purchase price, company won't get revenue of this model, so that they will stop producing this model after a model come out. Now Samsung mobile have S3 and Please note 1/2, it's difficult to find Splus in the market.

Figure 1. Changes in trend of price of the mobile phone

The change in style of price of cellular phone is usually being lowered by the move of time. As we can easily see from Amount 1, here are two changes in craze of price of Samsung mobile phone, an example may be S3 and the other you are Samsung Be aware2. These two models of mobile phone are the most popular types of Samsung. We are able to find the time when the cellular phone first arrived, the price was at the highest point. Samsung S3, when enough time it launched, the original price is RM2199. The price will stay for one to 8 weeks, and then it'll reduce, and till March 2013, people can understand this phone only RM1659. Identical to Samsung Take note2, but the several is, during February 2013, this model has gone out of stock, the demand is greater than the supply, so the price has been increased.

The demand of the cellular phone will influence the purchase price and amount. When there have more buyers, the purchase price might not lower as fast as it'll be, but might also increase a lttle bit, the quantity resource may also be increased. It's like the purchase price increase of Note2, the demand increase, so that the quantity resource increase, and after that period the purchase price get back to the normal trend.

How the determinants of supply affect the price and amount, when the resource increases, the quantity supply can also increase, so the price can be lower. When the purchase price is getting lower, people will be more happy to buy it, so that the quantity demand will increase.

Government Intervenes

In nowadays, government of Malaysia also acquired intervenes into cellular phone market. To begin with, in Malaysia, the economy system is a blended economic system. Blended economy system can be explained as the combination of the benefit of the free business and central command system. In Malaysia, some company is manipulated by the government however some are private. Furthermore, Malaysia governments are aiding those business people according to the legist ration and regulation, and they're not only about seller, they also included buyer as well as the consumer as well. For example, the federal government will assure the buyer are satisfied or concur the prices of goods and services provided by owner.

There are a plenty of economy issues that have to be solve by authorities, lack and the surplus are one of the most typical issues that occurs in Malaysia. But In cellular phone industry surplus issue seem to be to be typically the most popular issues in Malaysia. Surplus is signifying the supply of the goods and services are usually more than the demand of the consumer. Therefore, when they are surplus, the company will try to lower the price to be able to make higher demand of the buyer. In others words, surplus is imply that when the supply of goods and services is higher, subsequently its makes the buyer not willing to spend very much money to get the goods or services.

In this current yr, the Samsung company was introduction a new kind of brand new smart phone and these completely new smartphone was been mass creation by the company therefore the price of the phones will be more expensive than normal phone. Following the Samsung company experienced launched the smart phones in the period of your time, the supply aren't attained the demand of the consumer as a result of higher price and consumer unwilling to invest that a lot of money to get a mobile phone.

Thus predicated on the situation above, Malaysia administration has the responsibility to help the supplier to meet the demand of the consumer. To be able to get over this surplus problem, Malaysia governments have to make use of various ways to defeat this issue. For instance, Government has recently assisting those students and working adult that have salary below RM2000 by subsidiary RM200 rebate for those who purchase the smart phone.

Besides that, changes to taxation are also one of the nice ways for federal to defeat the surplus issues. For instance, the federal government will conduct a research to be sure of the tax repayment that is paid by the provider so that the government can make an adjustment to the taxation for suppliers in the certain period of time. With this change of taxation, the suppliers are able to decrease the price and meet the demand of the consumer.

In summary, Malaysia authorities should intervene the current economic climate and using the best solution to beat the overall economy issues by taking care of financial well and logical. Government also have to have a rational and clear before they make decision making on overall economy, because this will eventually impact the to the general public.

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