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:

Overriding Plate

The tectonic plate that sits above another plate at a convergent boundary, often responsible for mountain building and volcanic activity.

Ocean-Continent Convergent Boundary

A plate-tectonic boundary where an oceanic plate converges with a continental plate, generally expressed by subduction of the oceanic plate beneath the continent.

Flexing

The act of bending or tensing a material or muscle, often referring to the way earth's crust might bend under certain geological forces.

Thinning of the Lithosphere

The reduction in thickness of the lithosphere, often occurring in response to tectonic processes such as stretching and rifting.