Suppose Microsoft Announces It Is Cutting the Prices of Some

question 147

Multiple Choice

Suppose Microsoft announces it is cutting the prices of some of its software titles (mainly games) by 25 percent. Assuming that Microsoft is seeking to increase revenues, it must believe that the elasticity of demand for these products is

• A) elastic.
• B) inelastic.
• C) of unitary elasticity.
• D) perfectly inelastic.

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Definitions:

Compressed Workweek

A work schedule that allows employees to work the standard number of weekly hours in fewer days, often resulting in extended workdays and a shorter workweek.

Work Schedule

The predetermined days and hours set for employees to perform their job duties, which can vary in flexibility, duration, and structure.

Task Significance

The extent to which a job has a substantial impact on the lives or work of other people, either inside or outside the organization.

Occupational Safety and Health Administration (OSHA)

Labor Department agency responsible for inspecting employers, applying safety and health standards, and levying fines for violation.