<< Chapter < Page Chapter >> Page >

The over-supply of lcd-televisions led to a drop of about 40% in the prices over the past year. It is expected that prices will still come down with a further 20% in the course of this year. According to experts lcd-television sets are a boon to the consumer, but a disaster for manufacturers. They had to witness how fat profits changed into fat losses.

The over-supply of modern, flat televisions clearly illustrates the present risk of making money from consumer electronics. Technology changes so quickly that products soon become redundant and prices drop drastically. The personal computers of two years ago are almost worthless today, as is the case with digital cameras.

The reason for this is that electronics make use of chips, and every two years the speed of chips is doubled.

Chinese manufacturers copy everything in an instant, enabling them to sell quality imitations at rock-bottom prices.

Samsung and LG Philips nevertheless continue to invest large sums of money in new factories. This year the latter has opened the biggest lcd-factory in the world at a cost of 40 milliard rands. Nevertheless, these two market-leaders expect a growing demand for lcd-television sets which will cause new shortages. Should this happen, next year’s profits will be sky-high again.

In the meantime these manufacturers must also take note of new companies entering into the market. Also the more up-to-date and advanced technologies need to be taken into account, such as plasma televisions that have flat screens as well. Modern, energy-saving technology like oled-televisions could probably replace lcd in the future. OLED is an acronym for organic light emitting diodes.

Adapted from an article in Elsevier , 7 May 2005

Activity 2:

To determine why certain products are more expensive than others

[lo 1.3]

Your parents have decided that it is time to buy a new television set. You visit some shops selling television-sets. There you discover that there is quite a variety of sets available. The salesperson immediately points out the television sets with a plasma screen. It appears that these sets are much more expensive. But then again, the image is that much sharper and clearer.

Discuss the following questions :

  • Why are the sets with the plasma screens (LCD= Liquid Crystal Display) more expensive?
  • s that new or old technology?
  • Are the sets manufactured locally or are they imported?
  • Is there a big demand for these television sets?

Activity 3:

To make inferences from a graph on new technology

[lo 1.3]

Discuss this graph by answering the following questions:

  1. Have the sales of ordinary TV sets decreased at the same rate that the sales of lcd sets increased?
  2. How many fewer ordinary TV sets have been sold in 2004 and 2005?

a) How many lcd sets have been sold in 2005 and 2006?


Learning Outcomes(LOs)
LO 1
THE ECONOMIC CYCLEThe learner will be able to demonstrate knowledge and understanding of the economic cycle within the context of ‘the economic problem’.
We know this when the learner:
1.1 explains needs and wants and how the differences between them impact on communities and the environment;
1.2 describes the different types of businesses and activities within the primary, secondary and tertiary sectors;
1.3 explains the concepts ‘free’ and ‘economic’ (scarce) goods, and the influence of demand and supply on market prices.


  • It is very rarely the case that a specific trader is the only one who sells particular products. Therefore he / she must be properly equipped to handle competition in the market-place.
  • By way of an analysis chart, the learners are guided to determine exactly who the consumer is that they wish to target.
  • By answering simple questions the learners become aware of specific characteristics that an entrepreneur must possess in order to ensure success.

Questions & Answers

What is the law of demand
Yaw Reply
price increase demand decrease...price decrease demand increase
ıf the price increase the demand decrease and if the demand increase the price decrease
all other things being equal, an increase in demand causes a decrease in supply and vice versa
how is the economy of usa now
What is demand
jude Reply
Demand is the quantity of goods and services a consumer is willing and able to purchase at various prices over a given period of time.
Okay congratulations I'll join you guys later .
calculate elasticity of income exercises
If potatoes cost Jane $1 per kilogram and she has $5 that could possibly spend on potatoes or other items. If she feels that the first kilogram of potatoes is worth $1.50, the second kilogram is worth$1.14, the third is worth $1.05 and subsequent kilograms are worth $0.30, how many kilograms of potatoes will she purchase? What if she only had $2 to spend?
Susan Reply
cause of poverty in urban
DAVY Reply
QI: (A) Asume the following cost data are for a purely competitive producer: At a product price Of $56. will this firm produce in the short run? Why Why not? If it is preferable to produce, what will be the profit-maximizing Or loss-minimizing Output? Explain. What economic profit or loss will the
Falak Reply
what is money
DAVY Reply
money is any asset that is generally acceptable for the exchange of goods and for the settlement of debts
what is economic
Stephen Reply
economics is the study of ways in which people use resources to satisfy their wants
what is Price mechanism
Dhany Reply
what is Economics
The study of resource allocation,distribution and consumption.
introduction to economics
Uday Reply
welfare definition of economics
examine the wealth and welfare definitions of economics
read book by ml jhingan
What do we mean by Asian tigers
Aeesha Reply
Dm me I will tell u
What is Average revenue
How are u doing
it is so fantastic
it is a group of 4 countries named Singapore, South Korea, Taiwan and Hong Kong because their economies are growing very faster
Please, average revenue is an amount of money you gained after deducted your total expenditure from your total income.
what's a demand
Edward Reply
it is the quantity of commodities that consumers are willing and able to purchase at particular prices and at a given time
quantity of commodities dgat consumers are willing to pat at particular price
demand depends upon 2 things 1wish to buy 2 have purchasing power of that deserving commodity except any from both can't be said demand.
Demand is a various quantity of a commodities that a consumer is willing and able to buy at a particular price within a given period of time. All other things been equal.
State the law of demand
The desire to get something is called demand.
what is the use of something should pay for its opportunity foregone to indicate?
Random Reply
Why in monopoly does the firm maximize profits when its marginal revenue equals marginal cost
astrid Reply
different between economic n history
Falma Reply
in a comparison of the stages of meiosis to the stage of mitosis, which stages are unique to meiosis and which stages have the same event in botg meiosis and mitosis
Leah Reply
Researchers demonstrated that the hippocampus functions in memory processing by creating lesions in the hippocampi of rats, which resulted in ________.
Mapo Reply
The formulation of new memories is sometimes called ________, and the process of bringing up old memories is called ________.
Mapo Reply
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play

Source:  OpenStax, Economic and management sciences grade 7. OpenStax CNX. Sep 10, 2009 Download for free at http://cnx.org/content/col11025/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic and management sciences grade 7' conversation and receive update notifications?