Why Electronic Goods Cost of Price Decreases as u go on?????

June 11, 2007 12:13am CST
I think Usage of electronic goods increases,then automatically....goods price decreases.Year to year there is a drastic chage in price of electronic goods.Give any idea about this????
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1 response
@cdparazo (5768)
• Philippines
14 Jun 07
I the law of supply and demand. There are more supplies of electronic gadgets such as cellphones that it gets cheaper every year. The demand is also getting bigger that it is able to spread its fixed cost that results in cheaper prices. Old models also becomes cheaper because, they are simply old and has to be faced out. Competition also is becoming stiff and pricing is a matter of strategy. So it is always advantageous to have many competitors or brands of cellphones for it to become cheaper and cheaper.