In 2003,when Music Downloading First Took Off,Universal Music Slashed the Average

question 33

Multiple Choice

In 2003,when music downloading first took off,Universal Music slashed the average price of a CD from $21 to $15.The company expected the price cut to boost the quantity of CDs sold by 30 percent,other things remaining the same.If you are making the pricing decision at Universal Music,what would you do?

• A)lower the price because demand is inelastic
• B)raise the price because demand is elastic
• C)raise the price because demand is inelastic
• D)lower the price because demand is elastic
• E)not change the price because demand is unit elastic

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Definitions:

Isotonic

Describes a solution having the same osmotic pressure as some other solution, particularly that of a cell's cytoplasm, or refers to muscular contraction where muscle length changes while tension remains constant.

Isometric

Pertains to exercises or muscle contractions where the muscle length does not change, and no visible movement occurs, typically used to build strength and stability.

Anaerobic

Relating to processes or organisms that occur or can exist in the absence of oxygen.

Isometric Exercise

Exercise performed by contracting muscles against an immovable object.