a. Suppose that people vary greatly in their interest for buying a personal computer, but their willingness

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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.

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