business human resource
As the digital technology developing, a number of digital products have been put into market during these few years. Among all digital product market, digital cameras were rapid identified by consumers. According to numerous market investigation and report, it was indicated digital cameras had promising market prospect (MarkerResearch.com 2003). This essay aims to discuss how the market for digital cameras is evolving from economic analysis point of view. Firstly, it expounds the technological characteristics of digital camera. Secondly, it briefs the changes of demand curve for digital camera. Thirdly, it indicates digital cameras will have possibility to substitute conventional cameras gradually. Finally, it explores the changes in elasticity complements.
To compare digital camera with conventional camera, it has distinct technological advances. Digital photography avoids the film and film developing; makes it possible to view recorded images immediately. Moreover, the pictures can be able to use PC-based manipulation and enhancement. Meanwhile, digital cameras cannot only allow pictures to be shared worldwide via the internet, but also can take advantages of computer or wireless technology to transmission, storage, display, and printing of images (Market Report, September 2001). In addition, the functions of digital cameras are also much better and more than conventional cameras. For example, some digital cameras can record short video, or make pictures to be exchanged from colorful to black and white. These characteristics and functions of digital camera do not only bring more delight to people¡¯s life, but also improve work efficiency for special occupations, such as medium, photographer, etc. If we focus on the quantity of pictures taken, it is not difficult to see the pictures which are taken by digital cameras are a few times of conventional cameras, because internal storages of digital cameras are able to be changed.
Digital cameras have been put into market since 1994, and the salerooms were persistent increasing. From economic angle to analyze the reason of an increase in demand, it could be two possibilities: one is a rise in income; another one is a fall in the price of digital cameras. For the first point, it can be explained by diagram 1. As P diagram 1
can be seen from the diagram, the demand D¡¯
curve shifts from D to D¡¯. It means it has D
an increase in quantity at the same price. Q¡¯Q¡± Q According to the explanation from Principles of Economic, an increase in demand means that the whole demand curve has shifted to the right. Therefore, it proofs consumers increased the demand of products, due to they had a rise in income. For the second reason, diagram 2 will show that the change of demand when price has movement. It is clear from the diagram 2 that when P was high, Q decreased; when a decrease in [next page]