The Demand Function for Small Business Computers in the United

question 86

Multiple Choice

The demand function for small business computers in the United States is given by x = 200 - 10p, where x is annual sales measured in thousands of computers and p is the price of a computer measured in thousands of dollars.Japanese firms supply a big share of these computers.They measure prices in yen where 150 yen equal 1 dollar.The price of 1 computer is $10,000.Let E_u be the price elasticity of demand at this price as calculated by US firms who measure in dollars, and let E_j be the price elasticity of demand at the same $10,000 price but measured in yen by the Japanese firms.Which of the following are the values of E_u and E_j, respectively?

• A)-1, 2150
• B)-1, 21
• C)-2, 22
• D)-2, 2300
• E)-2, 20.0133

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Definitions:

Glass Cliff

A phenomenon where women or minority group members are more likely to be promoted to leadership positions during times of crisis or organizational instability, which may set them up for failure.

Leadership Positions

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Women

Female humans; also refers to issues, concepts, and perspectives related to femininity or the female gender.

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A cultural dimension that describes the degree to which societies are willing to tolerate uncertainty and ambiguity.