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Technology Stocks : Dell Technologies Inc.
DELL 131.17+0.9%10:00 AM EST
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To: edamo who wrote (143240)10/2/1999 8:44:00 AM
From: Jock Hutchinson  Read Replies (3) of 176387
 
Edamo: Truly you are the one who is clueless. An increase in price will (all other factors being equal) result in less demand. A decrease in price will (all other factors being equal) result in greater demand. Thus, since there appears to be a short-term increase in price (due to lower supplies of motherboards), there will clearly be less (somewhat) demand.

Of course, we are always looking at a dynamic (as opposed to static) market, wherein there is an upward shift in the demand curve throughout the world--which in turn mitigates any potential drop in demand that would result from an increase in price.

But my question for you is this. If DELL is the world's greatest assembler of computer components, why then does it not take on the task of "assembling" TVs or autos? What differentiates a product like a TV from a product like a computer? More and more, the answer is not much.
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