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Chapter 4: Problem 14

Vera has decided to upgrade the operating system on her new \(\mathrm{PC}\). She hears that the new Linux operating system is technologically superior to Windows and substantially lower in price. However, when she asks her friends, it turns out they all use PCs with Windows. They agree that Linux is more appealing but add that they see relatively few copies of Linux on sale at local stores. Vera chooses Windows. Can you explain her decision?

Short Answer

Expert verified
Vera's decision can be largely determined by peer influence and availability in stores. While Linux might have better features, Vera's friends, who all use Windows, might have praised the user-experience with Windows. Plus, seeing fewer Linux options in local stores implies that getting technical support or guidance for Linux could be more difficult. Consequently, she chose Windows over Linux.

Step by step solution

01

Analyze Vera's Initial Preference

Vera initially considers Linux as her first choice based on its technological superiority and lower cost.
02

Consider Peer Influence

Upon consulting with her friends, who all use Windows on their PCs, Vera potentially considers their user experience and suggestions. The trust in her friends' opinions might play a significant role in evaluating her options.
03

Evaluate Market Availability

In addition to her friends' opinions, Vera notices that Linux copies are rarely seen on sale at local stores. The accessibility and ease of purchase for Windows may have influenced her final decision.
04

Make the Final Decision

Considering her friends' preference for Windows and the less availability of Linux in the market, Vera decides to go for Windows. Despite the technological superiority and lower cost of Linux, Vera prioritizes the accessibility and peer recommendation over those factors.

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Most popular questions from this chapter

A consumer lives on a diet of solely steak and potatoes. Her budget is \(\$ 30\) for every 10 days, and she must buy enough potatoes to eat at least two potatoes per day. a. A potato costs \(\$ 0.50\) and the price of a steak is \(\$ 10\). How much will the consumer purchase of each good? b. Now suppose that the price of a potato increases to S1. How much will the consumer purchase of each good? c. Now suppose that the price of a potato increases to \(\$ 1.25 .\) How much will the consumer purchase of each good? What kind of good is the potato? e. Would you expect the demand curve for potatoes to continue to follow this trend indefinitely? Why or why not?

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