Software companies continually work to develop new features of their products that make it easier for users to interact and share their work. As more of these features are embedded in the software, what happens to the individual demand curve for the software products?

A) Demand curve becomes more elastic due to the bandwagon effect.
B) Demand curve becomes less elastic due to the snob effect.
C) Demand curve shifts, but its degree of elasticity does not change.
D) There is no change in the individual demand curve.

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Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  The addition of new features that enhance user interaction and sharing can create a bandwagon effect, where the value of the product increases as more people use it. This can make the demand curve more elastic because consumers may be more responsive to changes in price or features, as they perceive greater value in adopting what others are using.

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