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
B
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The dominant strategy for each of the players in the prisoner's dilemma game does not yield the optimal outcome for each player because:
A) each player is misinformed about the decision that has been made by the other player. B) the players do not understand the consequences of each of the choices they can make. C) the two players are not allowed to communicate or otherwise cooperate with each other. D) each player fails to consider how the other player might act.
If the dollar used to buy 100 yen and now buys 360 yen, there has been
A) appreciation of the dollar. B) depreciation of the dollar. C) appreciation of the yen. D) an increase in special drawing rights.