Question
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 200 - 5P - .1Pc - .5Pd
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows:
Q = 200 - 5P - .1Pc - .5Pd + .2A - I
Where P is the price of the game, Pc is the price of a computer, Pd is the price of a diskette, A is the level of advertising, and Q is the level of income. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50.What is the price elasticity of demand?
- A.0
- B.-5/9
- C.-1
- D.-9/5
WHAT IS THE CORRECT ANSWER
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Managerial Economics A Problem-Solving Approach
Authors: Luke M. Froeb, Brain T. Mccann
2nd Edition
B00BTM8FK0
