Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

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.



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: