Economics Investigative Sba

Topics: Personal computer, Supply and demand, Computer Pages: 7 (2050 words) Published: January 18, 2011
Introduction/ History of the problem
Although mechanical examples of computers have existed through much of the recorded human history, the first electronic computers were developed in the mid-20th century (1940- 1945), these were the size of a large room, consuming as much power as several hundred modern personal computers. Modern computers based on integrated circuits are millions to billions of times more capable than the early machines, and occupy a fraction of the space. Not only this, but they were costly and very limited in supply.

The internet café phenomenon was started in July 1991 by Wayne Gregori in San Francisco when he began SFnet Coffeehouse Network. Gregori designed, built and installed 25 coin operated computer terminals in coffeehouses throughout the San Francisco Bay Area. The café terminals dialed into a 32 line Bulletin Board System that offered an array of electronic services including FIDOnet mail and, in 1992, Internet mail. As the years went by the supply of computers increased and became one of the most important inventions.

An investigation of the factors affecting the demand for the utilization of cybercafé services among the residents of the Ste. Madeleine Area.

Purpose of the investigation
1) To determine the relationship between the price of computers and the demand for the utilization of the cybercafé services.
2) To determine the effect of a modernized standard of living (technology) and the demand for the usage of cybercafé services among the residents of a community. 3) To determine the price elasticity of demand for the use of cybercafé services.

Methods of investigation
The methods of investigation that were used in this research project include: * Questionnaire- 34 questionnaires were given to persons, 24 questionnaires were returned. This questionnaire was given to persons roughly of ages varying from 13- 30 years from the Ste. Madeleine area. * Personal Interviews- I interviewed persons of ages 16- 25 years of the Ste. Madeleine Area (all of whom visit cybercafés). * Observation- with the permission of the cybercafé owner of the Ste. Madeleine Open Bible Church Cybercafé, Pastor Donald De Coteau, and the customers present at the cybercafé, I observed what each customer visited the cybercafé for by asking them. The majority of the persons visiting were there completing business documents or school projects. The other persons came merely to browse the internet to amuse themselves by playing games or listening to music. I also observed that potential customers, when told the price, either left the cybercafé or looked displeased at the price of the cybercafé service.

The sources from which data was gathered for this research project include: * Newspapers- I read various articles about the fall in the price of computers. * Cybercafé owners- I talked with different cybercafé owners about background information of the cybercafé services and their clients.

* The Internet- refer to appendix (page. 22) for a sample article found on the internet. * Textbook
* Information Technology Magazines

I interviewed 18 people in the Ste. Madeline Area. Out of these 18, only 6 persons or 33.33% owned computers. About 15 persons or 83% of people said that cybercafé prices over the years increased. When asked if they were to get a computer if they would go to the cybercafé as often, 75% of the non- computer owning people said no because of the price. Then I asked all persons if the level of technology today affected whether or not they go to the cybercafé. 100% of the persons said yes because of the substantial reasons like, the world today is more technologically influenced. I informed the computer owners that the cost of computers long ago compared with the prices now are much less. When I asked them if they bought their computers recently all six computer owners replied yes and because of the price change. They said since then...
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