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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:

Competitive Advantage

A scenario or factor that gives a firm an upper hand or superior stance against its competition.

Observability

The degree to which the results or benefits of a product or innovation are visible and understandable to others.

Product Life Cycle

The stages a product goes through from development and introduction to the market, through growth, maturity, and eventually decline.

Maturity

The stage in the life cycle of a product, market, or industry where growth stabilizes and is at its peak before a possible decline.

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