Tuesday, August 21, 2007

Unit 1: Demand for Microsoft's Xbox

Microsoft intend to decrease the price of the Xbox in Europe following a similar decrease in the USA

http://news.bbc.co.uk/1/hi/business/6954718.stm

a) Why are Microsoft decreasing the price?
b) What view do you believe does Microsoft has regarding the Price elasticity of demand for the Xbox?
c) What is the economic link between the Xbox, the PS3 and the Wii?

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