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:

Injunction

A judicial order that restrains a person from beginning or continuing an action threatening or invading the legal right of another individual.

Union Dues

Fees paid by members to labor unions for the support of union activities, including negotiations, legal representation, and other services.

Political Activity

Participation in any action aimed at influencing government policy or decisions, ranging from voting and lobbying to activism and public demonstration.

State Collective Bargaining Laws

Legislation at the state level that governs collective bargaining rights and processes for public and private sector employees.