Microsoft Wants to Calculate the Effect of a Worldwide 5

question 31

Multiple Choice

Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries. Microsoft sells Excel at different prices in U.S., Japan and Europe. Before the price cut U.S. sales were twice sales in Japan and Europe. If the price of elasticity of demand in the U.S., Japan and Europe are -3, -4, and -2 respectively, the worldwide sales rise by

• A) 10%.
• B) 15%.
• C) 20%.
• D) 25%.
• E) none of the above

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Definitions:

Degrees

A unit of measurement for angles or temperature.

Crossmembers

Horizontal structures that provide support and stability to the chassis or frame of a vehicle.

Torsional Forces

Forces causing an object to twist about an axis, leading to stress or strain within the object.

Chassis Sub-components

The various smaller parts or systems that together form the chassis of a vehicle, providing structural support to the vehicle's body.