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Demand for X goes up when prices for X go down. First day of Econ 101. If X consists of two complementary components, A and B, then if the price for either A
by Nevermark 2y ago
Demand for X goes up when prices for X go down.
First day of Econ 101.
If X consists of two complementary components, A and B, then if the price for either A or B goes down, then the total price for X goes down, demand for X goes up. Which means demand for A and B went up.
Even if the price of only one of A or B went down.
So if the price of A goes down, demand for B goes up.
If software prices go down, then demand for the hardware to run that software on goes up.