Suppose That the Cross Elasticity of Demand for Dell Computers

question 220

Multiple Choice

Suppose that the cross elasticity of demand for Dell computers with respect to Hewlett Packard computers is 2.1. If Hewlett-Packard lowers its price by 5 percent, other things being equal, what will be the percentage change in the quantity of Dell computers demanded?

• A) 2.4 percent
• B) -10.5 percent
• C) 10.5 percent
• D) -42 percent

---

Definitions:

Self-Discrepancy Theory

A theory that describes how differences between one’s actual self, ideal self, and ought self can affect emotional states.

Self-Guides

Refers to internal ideals and standards that people use to guide their behavior and evaluate their own performance and identity.

Ideal Self

The concept representing the person one aspires to be, emphasizing personal goals and desired traits.

Self-Discrepancy Theory

A psychological theory suggesting that discrepancies between an individual’s actual self, ideal self, and ought self can lead to emotional discomfort.