These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.

Key Concepts: Case Study: Why the Size of the Elasticity of Demand is Important, Working with Demand Elasticities, Working with Supply Elasticities

U.S. Department of Justice—Microsoft Case Exhibit

Read the first paragraph of the February 24, 1997 email message from a senior Microsoft executive to Bill Gates that outlines the price elasticity issue of marketing the upgraded OS (Windows Operating System).

• Explain why Bill Gates might be interested in the price elasticity information on the proposed upgrade of Windows OS (operating system).
• If the OS elasticity measure is determined to be very inelastic, should Microsoft consider increasing the proposed upgrade price? Why or why not?
• Survey the current Microsoft Office XP Suite retail-pricing schedule. Explain why Microsoft offers eight different pricing options on their XP Suite.