(Last Word) Microsoft Charges a Substantially Lower Price for a Software

question 221

Multiple Choice

(Last Word) Microsoft charges a substantially lower price for a software upgrade than for the initial purchase of the software. This implies that Microsoft views the demand curve for the software upgrade to be

• A) more elastic than the demand for the original software.
• B) upsloping rather than downsloping.
• C) less elastic than the demand for the original software.
• D) of less value than the original software.

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Definitions:

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