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Computers Are a Complement to Computer Software

question 515

Essay

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?


Definitions:

Local Businesses

Small-scale enterprises that serve the local community, often characterized by their local ownership, operation, and limited geographical market reach.

Flat World

The idea that globalisation has led to a level playing field in terms of commerce, enabling all countries to compete equally.

Thomas Friedman

An American journalist, author, and three-time Pulitzer Prize winner known for his writings on globalization and technology.

Global Integration

The process of designing and implementing strategies to operate seamlessly across national borders, often involving the coordination of production, marketing, and R&D worldwide.

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