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A.) Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries.Microsoft sells Excel

A.) Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries.Microsoft sells Excel at different prices in U.S., Japan and Europe.Before the price cut U.S. sales were twice sales in Japan and Europe each.If the price of elasticity of demand in the U.S., Japan and Europe are -3, -4, and -2 respectively, the worldwide sales rise by?

B.) Consider the following short-run production function (where L = variable input, Q = output):Q=6L2-0.3L3. Does output always increase with input use? If so, prove it. If not, find the maximum output possible.

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