a. Suppose that people vary greatly in their interest for buying a personal computer, but their willingness
Question:
a. Suppose that people vary greatly in their interest for buying a personal computer, but their willingness to pay for a computer increases with the square root of the size of the “network” of others who use a computer with the same operating system; that is, if someone’s willingness to pay for a computer is B when no one else is in the “network,” the person’s willingness to pay for the same computer is BN1/2 when the network has N people. Pick three different levels of N, with N1 , N2 , N3
, and illustrate the linear aggregate demand curves, D1
, D2
, and D3
, that correspond to these levels of N for a computer with a particular operating system.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
Question Posted: