Impact of Wired and Wireless Technology on Security Equilibrium

This report critically examines the economic implications of wired and wireless technologies on the security market. It explores how these technologies influence supply and demand dynamics, impacting market equilibrium. The analysis uses microeconomic principles to illustrate the effects of technological advancements on production efficiency and the supply curve, showing how increased supply can reduce prices. It also delves into macroeconomic aspects, demonstrating how these technologies expand the production possibility frontier, potentially boosting economic growth and employment, while also acknowledging the potential for increased unemployment due to automation. The report uses a case study of Cisco and its integrated wired and wireless platform to illustrate how these technologies influence demand curves and market behavior. Overall, the report concludes that while technology advancements offer benefits, they also present economic challenges, emphasizing the need for a balanced perspective.

A critical discussion of how a
new wired and wireless
technology
impacts the equilibrium in
security

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Case Study..............................................................................................................................1
Equilibrium state of economy or market................................................................................2
Impact of wired and wireless technology on supply curve....................................................3
Impact of wired and wireless technology on demand curve..................................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Today technology has become an essential need for organisation in conducting their
business activities in more efficient manner. In terms of security products like cameras, high-
digital equipment etc. have replaced the demand of physical security guard under societies and
companies (Lewis, 2014). It includes two main type of technologies that are- wired and wireless.
The present report is going to make a critical discussion on fact related to how such technologies
impact the equilibrium in security product market. It also describes potential implications of
same on economy as a whole. For this assistance, some relevant economic model like demand
and supply, production possibility frontier and more, are used.
MAIN BODY
Case Study
In modern business world every single business organisation looks to safeguard themselves
with the help of many safeguarding systems. Therefore, many business agencies have developed
both wired and wireless security products through which a company can kept itself safe from
themes and so on. In previous time, organisations used to have men as their security guards for
its offices. Then also, there are many situations that has been found where company or its people
has become victim of different crimes (Baig and Gholamhosseini, 2013). In today’s Era
Technology has taken place in each and every section therefore, it can be said that old security
systems has got changed with different technological tools like CCTV cameras, internet security
based software and so on.
If it is talked about wired Technology then, an organisation uses Wi-Fi system but often it is
reserved for senior management all for the visitors. This approach basically has been taken for
the reason that is control and security so that employees may not take any sort of information
with them which is important and confidential for the organisation. Primal benefit which can be
seen of using physical connections is that it is relatively cost effective as the price of cables
based on their length in order to cover an average office is very much cheap in present time. But
its impact can be seen through small number of connections can only be done with a wired
connectivity. Therefore, if organisation is having more offices then one then it will be required
for them to have wireless connection for making the organisation connected to each other. Hence
forward, it can be said that demand of wired connection has come to a stage where it’s demand is
1

getting low which is directly putting impact negatively on Economy as well because there are
many companies that still makes internet cables that are going into loss.
Apart from this, since this is mobile era, public, organisation, agencies have been using
wireless connections for the internet connectivity. This has impacted immensely on security offer
company because in cyber world there are many cases has been found where company’s
information has been carried out and it was utilised against them (Patel and et. a.., 2013).
Therefore, a few elements like authentication, intrusion detection, reporting, prevention and
security event management needs to be included in the security setup of a wireless infrastructure.
Another issue which can be seen while considering a wireless connection and that is slow speed
of the internet which can be affected buyer’s outside influences such as electronic items, walls
and so on.
In present context, having a wired and wireless communication based connection with an
organisation has taken them forward through which a business can satisfy the needs of its mobile
workers and ensure control, security reliability requirements and so on. There are many actions
taken by different organisations in order to keep up the economy. This could be understood with
an example of Cisco where company unveiled its access platform that brought both wired and
wireless connection in one switch. The 5760 United access WLAN controller enabled both
wireless connections and wired infrastructure to be managed on top of the existence.
Equilibrium state of economy or market
The state of equilibrium of a market shows that price of a particular goods or services
will tent to stay the same. In other words, equilibrium can be defined as a price at which demand
od consumers for a good is equal to supply, provided by suppliers. Therefore, any change in
demand and supply will fluctuate the state of equilibrium also. It can be elaborated by taking an
example, where both supply and demand changes simultaneously (Townsend, 2013). These
changes are mostly encountered in macroeconomics as shown below:-
2

Overview of changes in equilibrium in prices:-
Changes To the right To the left
Shift in demand curve when
supply remains unchanged
It shows an increase in
demand which cause
equilibrium to enhance also.
It reflects reduce in demand
which tends state of
equilibrium to be decreased
also.
Shift in supply curve when
demand remains unchanged
Here equilibrium will decrease
with increase in supply.
While with decrease in supply,
equilibrium will increase.
Thus, it can be evaluated that an increase in demand will give a positive change in whole
economy and vice versa. While in case of supply, any changes will tend to fall the equilibrium
price. In context with present scenario, due to development of technology over wired to wireless,
there is large impact on changes in demand and supply curve. Here, demand of wireless security
equipment is raised when a company is having various branches and it has to monitor all
operations on single system. While wired security products are high in demand for local area
network to connect all systems within a single branch.
Impact of wired and wireless technology on supply curve
Microeconomics
Marketplace is modelled in terms of relationship between industries and all consumers for
a particular product or service (Johnson and et. al., 2016). The introduction of wired or wireless
technologies has improved the efficiency in production of security products and bring
productivity as well. It leads to consequently increases the supply curve where increase has
shifted to right, that shows decrease in equilibrium of security. As shown in given figure, effect
of moving to supply curve from QS1 (with an equilibrium in A) to QS2 (with a new equilibrium
in B). So, in this regard, an increase in supply from Q1 to Q2 leads to reduction in price from P1
to P2 as well. According to Johnson and et. al. (2016), it has evaluated that decreasing in supply
or production cost will increase output due to technological advancement.
Thus, it seems to be beneficial for people to get high security advancement on lower
prices. But with massive automation in security guard products has replaced the demand of
manpower which brings unemployment also, that is considered in macroeconomics.
3

Figure 1:Increase in supply curve
In context with organisations, it is not trivial because increase in supply will decrease the
cost of security products. Therefore, under this condition, it is hard to determine whether such
changes in equilibrium is favourable in terms of sales revenue.
As per figure shown in Elasticity (e) of the demand curve, it has a evaluated that with rise
in competition, many alternatives having same characteristics of high security equipment are
available in marketplace (Momoh, 2012). Therefore, in this regard, demand curve has presented
an elastic behaviour instead of inelastic as shown in below figure. In other words, it has
evaluated from this given figure that organisations are considered as higher price taker with
perfectly elastic demand. With this assistance, Average Revenue (AR) as well as Marginal
Revenue (MR) will be same as per output. For example: Let the production of company is at
QF1 where firm maximises its profitability i.e. MC1 = MR1 at average cost (AC) AC1. Then
under this condition, profit can be calculated as Profit = (P1-AC1) x QF1.
4

Figure 2: Revenue in equilibrium
Macroeconomics:
In this concept, the technology under wired or wireless security products has expanded the
Production Possibility Frontier (PPF) of economy as a whole. For example: A figure is plotted a
simple economy which produces two types of products, Wired and Wireless security systems.
Then, under this phase, new technology will expand the PPF from AS1 to AS2. The reason
behind this expansion is due to increase in technology of security system. By considering another
fact that economy of country is running at optimal level via PPF, then with development of high
technology will increase more demand of security products i.e. from from A to B with same
price of products. This increase in such output will lead to enhance economy and give
employment to people having high technical and computer knowledge. But it increases
unemployment also as demand in wired or wireless security system will reduce human guards
also.
5

Figure 3: Average Supply-Average Demand Model Macroeconomic Equilibrium
Impact of wired and wireless technology on demand curve
Microeconomics:
For analysing the impact of wired and wireless technology on demand curve, take an
example of Cisco Company of UK. It has unveiled its access platform by introducing both wired
and wireless connection in one switch-The 5760 United access WLAN controller. This system
has enabled both wired infrastructure and wireless connections in one system (Chaubey, 2016).
Therefore, it will create two main on demand curve-
Firstly, the system will be higher in demand as it consists new technology as well as
differentiate features from other security system. This will help in attracting more customers
towards products or services of Cisco. But according to view point Yun, Kettinger and Lee
(2012), it has evaluated that development in technology and launching such products will
decrease demand of cable wire and single wireless system. Along with this, it also rise
unemployment also which creates a large impact on economy of nation in negative manner. As
shown from below figure, it can be observed easily how an increase in demand moves the
equilibrium from A to B. This will imply an enhance in price level of demand also which is
positive for Cisco as it increase sales revenue.
6

Secondly, the another demand curve has shown a less elastic behaviour because new
technology having unique features will increase price as well (Lewis, 2014). Therefore, in this
regard, market will become more tolerant towards changes in price which shows decrease in
elasticity when there is more development in technology.
Figure 4: Increase in demand curve
Macroeconomics:
By considering the above example, where Cisco launches a new product that combines
with both wired infrastructure and wireless connection, has increased the demand of such
security products at marketplace. Therefore, as per view point of Stankovic (2014), it has
evaluated that there will be much progress in security related issues. The demand in marketplace
of such security system will increase economy of organisations and nation as well. Therefore,
with this assistance, it can be ascertained that there will be high expansion in production
possibility frontier (PPF), as shown in below figure- due to increase in productivity.
7

Figure 5: Expansion of PPF
CONCLUSION
From this assignment two major economic implications of technologies have been
concluded. Firstly, development in technology have raised economy of country in positive
manner. Secondly, it reduces the issues related to security for organisations, individuals and
nation as well. From discussion of microeconomic, it has evaluated that wired and wireless
security products has increased supply curve. While from macroeconomic discussion, concept of
demand curve with expansion in PPF have ascertained. Through both analysis, it has concluded
that effect in PPF has stated that the technology will bring a general expansion of national
economy. But it will increase the rate of unemployment also which negatively impact on the
same.
8

REFERENCES
Books and Journals
Stankovic, J. A., 2014. Research directions for the internet of things. IEEE Internet of Things
Journal. 1(1). pp.3-9.
Yun, H., Kettinger, W. J. and Lee, C. C., 2012. A new open door: The smartphone's impact on
work-to-life conflict, stress, and resistance. International Journal of Electronic
Commerce. 16(4). pp.121-152.
Lewis, T. G., 2014. Critical infrastructure protection in homeland security: defending a
networked nation. John Wiley & Sons.
Chaubey, N. K., 2016. Security analysis of vehicular ad hoc networks (VANETs): a
comprehensive study. International Journal of Security and Its Applications. 10(5). pp.261-274.
Momoh, J. A., 2012. Smart grid: fundamentals of design and analysis (Vol. 63). John Wiley &
Sons.
Johnson, L. and et. al., 2016. NMC horizon report: 2016 higher education edition (pp. 1-50). The
New Media Consortium.
Townsend, A. M., 2013. Smart cities: Big data, civic hackers, and the quest for a new utopia.
WW Norton & Company.
Baig, M. M. and Gholamhosseini, H., 2013. Smart health monitoring systems: an overview of
design and modeling. Journal of medical systems. 37(2). p.9898.
Patel, A. and et. a.., 2013. An intrusion detection and prevention system in cloud computing: A
systematic review. Journal of network and computer applications. 36(1). pp.25-41.
9