ECO701 Economics and Business Environment

Question 1

In this question assume the role of a consultant who has been hired to advise a relatively new company that makes virus and malware protection software for Personal Computers (PCs) and Laptops that use Windows operating software. Using your knowledge of Demand address the following questions. All answers provided must be justified. Be sure to utilise relevant graphs and wider reading to support your answers. (Note only consideration of the demand curve is required for these questions).

1. The Owners of the company noticed some recent changes in the market. For each of the noted changes explain the likely effect on the demand of the protection software.
   1. Increases in the prices of Laptops
   2. Decreases in the price of relative software made by a rival company

Increases in the stories published about hacker attacks on PCs and Laptops through viruses and malwar