Necessities tend to have more inelastic demands than luxuries

The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the

A) external cost. B) external benefit. C) deadweight loss. D) big tradeoff.

Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent

What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software? A) -2.0 B) -0.5 C) 0.5 D) 2.0