Multiple Choice
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
Correct Answer:
Verified
Correct Answer:
Verified
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