Supply and Demand Assignment


Market: Graphics Card

Graphics card prices have been steadily increasing, higher than their manufacturer suggested retail pricing. With the climb in popularity of cryptocurrency mining, more and more individuals require graphics cards. They are an effective way of mining digital currencies such as ethereum, leading to a greater demand. This demand has created a product shortage in graphics cards, and lead to a higher price.

The demand determinant for this case is the number of buyers. The number of buyers increased because they use the graphics cards for mining, which is very popular right now. This pushes the entire demand curve to the right because of the increase in demand. The shift of the demand resulted in a shortage of product, and the equilibrium quantity and price increased.

Nvidia and AMD, two of the largest graphics card producers, have issued statements that they are attempting to fix this problem. It has been rumored that they will release products that are catered towards mining, and this should decrease the demand for the regular graphics cards, decreasing the price.



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