Because of an Alarming Drop in the Earnings of Microminds

question 36

Multiple Choice

Because of an alarming drop in the earnings of Microminds Ltd., Roger, the principal contract negotiator and president of the software development company, called a meeting to discuss productivity and customer satisfaction. At the meeting were Michael, a troubleshooter who helped customers over the phone who needed guidance in using the company's software; Ralph, the receptionist and purchaser of the office supplies for the company; Keith and Jason, salesmen hired on a commission basis (i.e., not as employees but as independent contractors) ; Mr. Toman, purchasing agent for the Vancouver School Board, an important customer; and Mr. Rice, purchasing agent for Matol Toys Ltd., also a customer. Which of these is acting as an agent?

• A) All of them
• B) All of them except Keith and Jason
• C) All of them except Michael
• D) Roger, Toman, and Rice only
• E) Only Roger

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Definitions:

Price Inelastic

A condition where the quantity demanded of a good or service is relatively unaffected by changes in its price.

Technological Change

Refers to advancements or improvements in technology, which can lead to increased efficiency and productivity in various sectors.

Price Elasticity

The extent to which demand for an item varies with a shift in its cost.

Income Elasticity

An indicator of the variation in demand for a product based on alterations in consumer income.