Microsoft raises the price of its Office software by 10 percent. ...

[Alygatorr01285]

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

Question 2

The more ________, the larger is the amount of the tax on the good that the ________ pays.
 
  A) elastic the demand for a good; buyers
  B) inelastic the demand for a good; buyers
  C) inelastic the supply of a good; buyers
  D) elastic the supply of a good; sellers

[vish98]

Answer to Question 1

B

Answer to Question 2

B

[Alygatorr01285]

Gracias!

[helenmarkerine]

Thanks for the timely response, appreciate it