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

question 103

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 price elasticity of demand?

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

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Definitions:

Exponentiation

A mathematical operation involving the raising of a number to the power of another number.

Division

A mathematical operation where one quantity is divided by another, yielding a quotient or result.

Division

In mathematics, division is one of the four basic operations, calculating how many times a number is contained within another number.

Exponentiation

A mathematical operation involving the raising of one number to the power of another, symbolized as \(a^b\).