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smilespray | 1 year ago

> demand for macbooks goes up when creative software gets cheaper

Is this something you just made up, or does this really happen? Colour me sceptical.

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Nevermark|1 year ago

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.

brookst|1 year ago

It’s a reframing of vertical integration, which does lead to lower prices or higher value assuming reasonable competition. You can also think of it as disintermediation (“cutting out the middleman”).

dash2|1 year ago

It would probably be easier to test the other way round: demand for creative software goes up when macs get cheaper.

plufz|1 year ago

I mean theoretically that makes sense? If you get more value for something it increases the chance of buying it? But I also have no idea if this statement is true.