Microsoft Raises the Price of Its Office Software by 10

question 303

Multiple Choice

Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent. What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software?

• A) -2.0
• B) -0.5
• C) 0.5
• D) 2.0

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Definitions:

Distinctiveness

Distinctiveness is the feature that makes an object, idea, or person stand out from others in comparison, highlighting unique characteristics.

Consensus

General agreement among a group or the collective opinion, judgment, or position of a majority of members within a specific context.

Frequency

In the context of statistics and research, frequency refers to the number of times an event or value occurs within a given dataset or period.

Stereotype

is a widely held but fixed and oversimplified image or idea of a particular type of person or thing.