The demand curve that Microsoft faces for Vista most likelylooks like ________,

Question

The demand curve that Microsoft faces for Vista most likelylooks like ________, while the demand curve that a small softwareretailer faces for Vista most likely looks like ________.

The biggest difference betweenMicrosoft and software retailers is the market structure in whichthey operate. Microsoft acts as a monopoly, while companies likeCircuit City and Best Buy operate in a competitive market,competing with each other and with hundreds of other stores. Forsimplicity, let's think of Circuit City as being a representativestore.

Explanation / Answer

C. Graph I; Graph II Consider demand for vista in general in inelastic becausethere is only one company produces it so it will be inelastic I andsmall retail does not have money, thus has to buy less thus wouldbe II C. Graph I; Graph II

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