The Demand for Personal Computers Has Been Estimated to Be

question 31

Multiple Choice

The demand for personal computers has been estimated to be Q = 500,000 - 700P + 200I - 500S.Assume that per capita income I is $13,000 and the average price of software S is $400.When the price of personal computers is P = $3,000,the price elasticity of demand is:

• A) -2.625.
• B) -7.0.
• C) -1.0.
• D) -21.0.
• E) -4.25.

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Definitions:

Conversations

Dynamic exchanges between two or more individuals, where information, ideas, or feelings are communicated verbally or through gesture.

Conversations

The informal exchange of ideas through spoken or written communication between two or more individuals.

Recognize

To identify or acknowledge the existence, validity, or rights of individuals, entities, or concepts based on previous knowledge or new understanding.

Openings

Openings are opportunities or chances that allow for new actions, possibilities, or the initiation of processes in various contexts.