Buying a Wii Game Console
When the Wii came on the market there was and still is a high demand for them because it was something new and exciting that all the kids wanted one. The stores actually sold completely out of them which meant that the stores supply did not meet the demand for the Wii. Supply is the claim that other things equal the quantity supplied of a good rises when the price of the good rises. (Mankiw, 2007) Demand is the claim that other things equal the quantity demanded of a good falls when the price of the good rises. (Mankiw, 2007) When purchasing a Wii Game Console there are several factors that can affect supply and demand. One factor that would affect the supply and demand for the Wii Console would be the price. The Wii Console which previously sold for $249 and now they sell for $199. What the decrease in price tells me the consumer is that the demand for the Wii is not as high as in the previous year so therefore Nintendo dropped the price. Another factor that would affect the supply and demand for the Wii would be Nintendo and its knack for creating new and innovative games for the Wii. Having already purchased a Wii after playing one game a couple hundred times you get bored and you start to look around for new games. If Nintendo stops creating new games it could have a negative effect on the demand for the Wii and could cause persons who already have the Wii to sell or trade theirs for a new video game. The expectations of the consumers can also affect the supply and demand of the Wii. A person expecting the Wii to drop lower than $199 may wait several months to a year to see if it drops before purchasing it. In today’s economy consumers are looking for a bargain and are willing to wait for the sales. Some substitutes for the Wii game would be an X-Box 360 or the “knock off Wii” called a Reaction. The Reaction looks similar to a Wii but is lacking in a lot of areas it is of no comparison the original Wii. Complement is two goods for which an increase
References: Mankiw, N.G. (2007). Principles of Economics (4th. Ed.). Mason, OH: South-Western Cengage Learning