Supply and Demand Assignment

With the recent surge of popularity in Bitcoin and other cryptocurrencies, graphics card prices have also surged. People purchase and use large numbers of graphics cards in order to “mine” cryptocurrencies. As the result, the demand for graphics cards has increased causing a drastic increase in price. For example, the Nvidia GTX 1070, a card that should retail for about $380 is being sold for over $700 due to lack of stock.

From an economics perspective, there was a change in the demand determinant, number of buyers. Since the number of buyers increased, the demand curve moved right. This resulted in a shortage, causing an increase in the equilibrium price and equilibrium quantity.

 

supply and demand

 

 

 

Source: https://www.theverge.com/2018/1/30/16949550/bitcoin-graphics-cards-pc-prices-surge

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s