2. (10 points) Most software companies produce periodic revisions to their software that add new functions and greater capabilities, increasing the value of the software to users. When such a revision is produced, software companies typically offer the improved software at one price to customers who already own a previous version of the software (this is called an upgrade) and at a different price to customers who have never purchased the software before. The upgrade price is usually less than the price to customers who are purchasing the software for the rst time, although the software is the same in both cases and there is no cost difference in providing it to the two types of customers. Give an economic justification for why this would be prot maximizing. (Hint: Your answer will be incomplete if it does not mention elasticity.)