Question
Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, and
Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, and you have just learned that Congress has passed a two-pronged program designed to further enhance the U.S. computer industry's position in the global economy. The legislation provides increased funding for computer education in primary and secondary schools, as well as tax breaks for firms that develop computer software. As a result of this legislation, what do you predict will happen to the equilibrium price and quantity of software?
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