In 2003, when music downloading first took off, universal music slashed the price of cds from an average of $20 to an average of $8. the company said that it expected the price cut to boost the quantity of cds sold by 75 percent. questions: (a) what was universal music’s estimate of the price elasticity of demand for cds? and (b) given your answer to (a), if you were making the price decision at universal music, would you cut the price, raise the price or leave the price unchanged? , explain your decision.

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups. b. we cannot infer anything from these data since the distribution of salaries is likely right skewed. c. you cannot draw any valid conclusions because the sample sizes are different. d. more students should complete internships because having an internship produces a higher salary.