Scenario 4.4: the Demand Curve for the New Computer Game, Rock and Rock

question 138

Multiple Choice

Scenario 4.4:
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows:
Q = 200 - 5P - .1Pc - .5Pd + .2A - I
where P is the price of the game
Pc is the price of a computer
Pd is the price of a diskette
A is the level of advertising
Q is the level of income
-See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the income elasticity of demand?

• A) 0
• B) 5/9
• C) 1
• D) 9/5
• E) none of the above

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Definitions:

Rung By Rung

A method of analyzing or programming ladder logic, one rung (a complete circuit within a ladder diagram) at a time.

Horizontal

Oriented or extending from side to side, parallel to the horizon, as opposed to vertical.

Vertical

Referring to the upward or downward direction in a structure or representation, often used to describe the arrangement of components or data.

Input

Input refers to the data or signals that are fed into a system or device for processing or for affecting its operation.