If one firm in a relatively new network goes out of business, we expect the demand curve for the network good to
A) pivot downward.
B) pivot upward.
C) shift downward.
D) remain unchanged.

Question

Quizplus · Accepted Answer

If one firm in a relatively new network goes out of business, the demand curve for the network good will pivot downward because the network will become less valuable to consumers.

If One Firm in a Relatively New Network Goes Out