Apple, the Consumer Electronics Giant, on Tuesday Rolled Out New

question 88

Multiple Choice

Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPod music player. CEO Steve Jobs also unveiled cheaper models of its Touch music player, a touchscreen-only device. An 8-gigabyte version now costs $230, down from $300. A 32-gigabyte model costs $400, down from $500. Calculate the price elasticity of demand for a 32 gigabyte Touch player if the quantity demanded increases from 850,000 to 950,000 the month after the price decrease.

• A) 0.5
• B) 1.5
• C) 1
• D) 0.75

Understand CEO compensation dynamics and the debates surrounding them.

Identify the impact of compensation structures (e.g., stock options, profit sharing) on employees and firm performance.

Realize changes in the composition of compensation (take-home pay vs. fringe benefits) over time.

Understand the key objectives and impacts of the New Deal housing policy.

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Definitions:

ROCE

Return on Capital Employed; an economic metric that evaluates how effectively a firm uses its capital to generate profits.

Variable Costs

Expenses that shift in direct proportion to the amount of production or sales, like labor and materials.

Fixed Costs

Costs that remain consistent for a company irrespective of how much goods or services it produces.

Financial Leverage

Financial leverage is the use of borrowed funds to increase the potential return of an investment.