The Demand for Personal Computers Has Been Estimated to Be

Multiple Choice

The demand for personal computers has been estimated to be Q = 500,000 - 700P + 200I - 500S.Assume that per capita income I is $13,000 and the average price of software S is $400.When the price of personal computers is P = $3,000,the price elasticity of demand is:

A) -2.625.
B) -7.0.
C) -1.0.
D) -21.0.
E) -4.25.