Income and price elasticities in the US demand for computers

To assess the impact of changing income and computer prices on the demand for minicomputers and mainframes, the author has developed simple demand models. The model proposed relates the number of computer units sold with measures of computer prices and the industrial production index. The results, applied to computers during the years 1965-86, indicate that demand for minicomputers is more sensitive than the demand for mainframes to changes in economic conditions.<
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