Microsoft Raises the Price of Its Office Software by 10

question 62

Multiple Choice

Microsoft raises the price of its Office software by 10 per cent. As a result, the quantity of personal computers demanded at the current price decreases by 5 per cent. What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software?

• A) 2.0
• B) - 2.0
• C) 0.5
• D) - 0.5

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Definitions:

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Carrier

A person whose genotype includes a gene that is not expressed in the phenotype. The carried gene occurs in half of the carrier’s gametes, and thus is passed on to half of the carrier’s children. If such a gene is inherited from both parents, the characteristic appears in the phenotype.

Multifactorial

Involving or resulting from many different factors or causes, often used in the context of genetics, diseases, or complex traits.

Polygenic

Referring to a trait that is influenced by multiple genes, often resulting in a continuous range of outcomes.