Included on the board of directors of Microsoft are John W. Stanton, the chairman of Trilogy Equity Partners, the president of Harvey Mudd college Maria M. Klawe, and the former vice chairman of Bank of America Charles H. Noski.
These three board members do not have a direct management role with Microsoft and are therefore referred to as
A) competitive directors. B) outside directors.
C) inside directors. D) honorary directors.
Question 2
Jill Borts believes that the price elasticity of demand for her economics textbook is relatively inelastic. She argues I was told I had to purchase a book written by Hubbard and O'Brien that is required by my instructor.
If I wanted to buy a mystery novel I would have many authors to choose from. Therefore, the demand for mystery novels is more elastic than the demand for my textbook. Is Jill correct?
A) She is correct that the textbook has a more inelastic demand, but that is because most students pay for their textbooks with credit cards. Most people pay for novels and other books with debit cards.
B) She is correct.
C) She is confused. She should have concluded that the textbook has a more elastic demand than a novel.
D) The demand for the textbook is more inelastic, but Jill's reasoning is incorrect. The reason the textbook has an inelastic demand is that it is more expensive than any novel.
