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Computers Are a Complement to Computer Software

question 9

Essay

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?


Definitions:

Consumer Behavior

The examination of the ways in which individuals, groups, and entities choose, purchase, utilize, and discard products, services, ideas, or experiences to fulfill their wants and needs.

Marginal Utility

The change in satisfaction or utility a consumer receives from consuming an additional unit of a good or service.

Utility-maximizing

The economic principle that individuals or firms seek to get the highest satisfaction or profit from their resources and choices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.

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