The demand for Microsoft Windows products is relatively inelastic. Damage that reduces the supply of Microsoft Windows products will also cause Microsoft revenues to fall.

Question

Quizplus · Accepted Answer

The demand for Microsoft Windows products is relatively inelastic, meaning consumers' purchase quantities do not significantly change with price changes. Therefore, if the supply of Microsoft Windows products is reduced, leading to higher prices, total revenue for Microsoft could actually increase or remain unchanged because the quantity demanded decreases only slightly or remains stable, while prices increase.

The Demand for Microsoft Windows Products Is Relatively Inelastic