In 2003,when Music Downloading First Took Off,Universal Music Slashed the Average

question 33

Multiple Choice

In 2003,when music downloading first took off,Universal Music slashed the average price of a CD from $21 to $15.The company expected the price cut to boost the quantity of CDs sold by 30 percent,other things remaining the same.If you are making the pricing decision at Universal Music,what would you do?

• A)lower the price because demand is inelastic
• B)raise the price because demand is elastic
• C)raise the price because demand is inelastic
• D)lower the price because demand is elastic
• E)not change the price because demand is unit elastic

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Definitions:

Throat

The anterior part of the neck, beginning at the oropharynx and extending to the larynx, serving as a pathway for air and food.

Internal Respiration

The exchange of gases (oxygen and carbon dioxide) between the blood and the body's cells.

External Respiration

The process of gas exchange between the environment and the body, involving the intake of oxygen and release of carbon dioxide via the lungs.

Cellular Respiration

The process by which cells break down glucose and other molecules to release energy in the form of ATP.