Economics - Supply and Demand
... 2000. There are other factors which may have contributed to the overall growth in the computer services market such as e-commerce and contracting out computer systems. With continually changing technology, the computer services market will be constantly growing. The increase in demand leads to an increase in the quantity supplied. Business service providers have been anticipating the increase in demand and have been focusing on Y2K-ready products. There has been no significant change in the price for business service providers throughout the past decade.; this demonstrates the increase in supply assists in keeping the equilibrium price the same. The Canadian economy is growing and the business service provider economy has been expanding with it at a faster rate. The business service provider market is .9% more now than in 1995. The GDP (gross domestic product) has increased 3.4%. The demand for business service providers is inelastic. Price change does not effect the consumer. The price can go up or down without effecting the quantity demanded. Both businesses and households will be perpetually changing their computer software, hardware, and mechanical devices due to advancements in both technology and efficiency. ...