Explore BrainMass

Economic Concepts

I am preparing a booklet of the skills and information that I gained from my economics class so that I have the information for future classes. I am doing it on the Technological Industry and I need help in putting it together below is what it have to consist of.

A. Industry Research Introduction (background, preview major points, set theme)
B. Price elasticity of supply and demand
C. Negative or positive externalities
D. Wage inequality
E. Monetary and/or fiscal policies
F. Economic effects of the industry
G. Influences that can affect the industry in a negative way
H. Conclusion as described in the left column (green) (review major points, statement or two to end paper.
II. Reference Page

Solution Preview

The technological industry refers to the collection of products and services that convert data into accessible, meaningful and valuable information. This industry includes services, hardware and software. By one definition the communications hardware and software are also included in this class. The world's largest spender in information technology is the USA. In 2005 the spending on technological industry products was $1,13 trillion. USA is the largest per capital spender on information technology. Of the market sector spending the spending of $239.1 billion, the consumer sector spent the most in 2004 on IT, the financial and business sector spend $200.7 billion and government at $164.4.

In the technological industry the elasticity of demand is greater than one. The reason is that most of the demand for technology industry has been generated by substitution. And if there is an increase in the prices of the technology industry there will be a tendency to fall back on the older methods. In addition, if there is greater fall in prices especially in the hardware and software there will be greater substitution with technology industry products. For instance those sectors that are not using computers will start using more computers.
The elasticity of supply in the short run is lower than one. If there is a sudden fall in demand the producers of technology industry products will decrease the prices and sell of their products. In the short run it is not possible for technology industry manufacturers to reduce ...

Solution Summary

Economic Concepts are discussed very comprehensively in this explanation.