Microsoft and change in income
In all markets a change in the consumer’s income will greatly affect a market. For example, if a good was an inferior good than an increase in income would lead to a decrease in demand for that inferior good. If a good were elastic than a decrease income would as well lead into a decrease in demand for that good. If a good was perfectly inelastic than any change in consumer income would not greatly effect the demand of the good. An inelastic good would for example be water. Since it is needed greatly, a change in price for water wills not greatly effects the demand for it. These same concepts apply to the different different products of Microsoft. Since Microsoft office is a unique product and is universal, Microsoft word is on the more inelastic side of the income spectrum. On the other hand, Xbox is a more sort of elastic good, a change in income will give people the incentive to either stop gaming or switch to other gaming companies that have free service like PC gaming or the Sony play station.