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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:

Foreign Aid

Financial or non-financial assistance given from one country to another, often to support development or alleviate poverty.

Purchasing Power

The real value of money in terms of the quantity of goods or services that one unit of money can buy.

Disinvestment

The process of selling off a portion of assets or withdrawal of investment capital from stocks, bonds, or businesses, often indicating a strategic or economic decision.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises, including education, healthcare, and law enforcement.

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