Children add further complexity by combining two or more clauses. They can link them with coordination or subordination. In subordinate constructions, one clause is embedded in the main or matrix clause. The embedded clause can fill a grammatical role, as subject, say, in complement constructions, or it can modify parts of the main clause, adding to a noun phrase with a relative clause, or to a verb phrase with a temporal clause. These constructions allow for more options in the flow of information as well as in the expression of more complex events. Among the first constructions here are coordinations of different elements in a clause, as well as of different clauses. Among subordinate clause constructions, because, what, when, and so were the most frequent up to 2;9, followed by if, that, and where. They produced relative clauses to specify referents; complements with verbs like think and know. And they produced temporal, causal, and conditional constructions to describe sequences of events. Children treat clause order first as reflecting the actual order of events, only later assigning the appropriate meanings to connectives like before and after. And they take time to master the meanings of because and if.

This chapter explores the factors that influence the profitability of digital innovations. These include the relationships with other parties in the ecosystem and some aspects of the regulatory environment. Generally, the more firms in a market, and the more similar their products, the more intense the competitive rivalry. However, firms also compete for profits in their other relationships such as those with customers and suppliers. Bargaining power in a supply or customer relationship depends on how many alternatives there are on each side, and how unique their products or needs are. In digital systems, innovators also need to work with many providers of complementary products, technologies, or services. This creates an external dependence for a critical resource that needs to be strategically managed. However, developing and offering complementary products in-house may be too difficult and expensive. Innovation strategy often involves managing trade-offs, such as the benefits and costs of sourcing complements and inputs externally versus internally. In considering all such arrangements, the innovator’s ability to differentiate in a way that enhances the customers’ willingness to pay tends to increase its profitability.

This topic examines the nature of factors that affect what people buy and how much. These factors can be categorised into controllable and uncontrollable by managers. The first category relates to internal factors to the firm and involves the marketing mix. The second category relates to external factors in the business environment. A mathematical framework of analysis is required to quantify the effects of the different variables. This involves the use of demand functions or equations, which are often in a linear or power form. The linear form entails the coefficients of explanatory variables representing the marginal effects of those variables. The power form entails the coefficients or powers of the variables representing elasticities. There is a discussion of the factors determining various elasticities and their interpretation. The importance of elasticities in economic analysis is explained, in terms of managerial decision making and forecasting. The focus is on the application of concepts in demand theory to real-life situations, and the performance of the necessary calculations to make decisions and forecasts. Many solved problems are presented as an aid to this process.

Markets are intersections of buyers and sellers brought together to exchange goods and services most efficiently, so the theory goes. In fact, markets are also connected to barter and exchange and to their underlying value: resourcefulness. We look at Nina Katchadourian and her artwork made on airplanes ("Seat Assignment") as an example of resourcefulness, Caroline Woolard’s Work Dress as an example of barter, and Elizabeth Cleland’s exhibition as an example of equivalencies created by markets. We introduce supply and demand, how the graphs are constructed, and how to think about shifts in supply and demand.

This chapter provides an introduction to syntactic structure and how it is represented by tree diagrams. It begins (2.1) with an account of the Merge operation by which words can be combined together to form phrases, and phrases combined together to form clauses. It then goes on to examine the nature of heads, complements and specifiers (2.2), and the nature of projections (2.3). Next (2.4), it outlines eight ways of testing syntactic structure, before turning to look at how hierarchical structure (and the relation c-command) plays a central role in the description of phenomena like the licensing of polarity items (2.5) and the binding of anaphors (2.6). It also briefly touches on the possibility of developing a theory of bare phrase structure, and of treating syntactic structures as inherently unordered, with linearisation taking place in the phonological component. The chapter concludes with a summary (2.7), and a set of bibliographical notes (2.8). Accompanying free-to-download materials include a Workbook for students, and an Answerbook and set of PowerPoints for teachers: each of these contain a separate set of materials for each core section of the chapter.