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05 18. The demand function for iall usinzss computers in the United States is given by x D 200- 10p, where x is annual sales
05 18. The demand function for iall usinzss computers in the United States is given by x D 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 Eu be the price elasticity of demand at this price as calculated by US firms who measure in dollars, and let E; 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, and E}, respectively? a. :1 , 2150 b. :1, 21 2, 22 d. .2, 2300 e. .2, 20.0133 ANS: B DlF: 1
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