How Does Dell Computers Affect The Economy

The U.S market is based on free enterprise driven by supply and demand of goods or service which affects resource used by the business and government. Consumer has the right to choice what price they want to pay for items such as gas, food, clothing, housing, and entertainment which are govern by market forces that have business competing to maximize profits. Dell Computers have option to buy their hardware for the computer such as keyboard, mouse, monitor etc. from hundreds of manufactures worldwide. The management team can control inventory, what price to sell their product, how to distribute the product, and staffing level to make product. Demand for the computer is driven by consumer willing to pay at specific time and Dell’s quantity of the good is driven by how much they produce at given prices. Generally the law of Demand is higher the price of the product or service the lower quantity needed and it’s opposite for the law of supply, higher the price of product or service the higher quantity needed. …show more content…
is exporting less to other countries than importing creating national debt since we have not paid for those goods and services. The nation’s debt comes at cost in form of interest paid on the borrowed money which could be used to grow our economy. Government generally raises taxes to pay for debt which results in smaller profit margin for business or higher price on the consumer. The government keeps economy stable through two policies fiscal and monetary policy that focus on control nation’s money supply. Fiscal policy is through tax rates for example recent administration cut tax rate on middle class and raised on higher income and businesses. Monetary policies are when the central bank decides to inject money into the economy to help bring growth back in 2008-2009. This help business borrow money at lower interest rate since the center bank has increased the supply of money in the