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

---

Definitions:

Personal Computer

A general-purpose computer designed for use by an individual, typically consisting of a monitor, keyboard, mouse, and CPU.

Defragment And Optimize Drives

A process that rearranges fragmented data on a disk drive to improve efficiency and speed up access to files.

Hard Drive

A data storage device used for storing and retrieving digital information, using rapidly rotating disks coated with magnetic material.

Start Menu

A feature in Windows 10 that provides access to all applications in one convenient screen.