Avital and Joshua Each Have Their Own Business Selling Lemonade

question 167

Multiple Choice

Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:

• A) Joshua faces a more inelastic demand curve.
• B) Avital faces a more elastic demand curve.
• C) Joshua faces a more elastic demand curve.
• D) Avital faces a less inelastic demand curve.
• E) there is a market failure.

---

Definitions:

Self-Referent Encoding

The process of relating new information to personally relevant information during the memory storage process, enhancing recall.

Visual Image

A mental representation of an object, scene, or face that can be recalled or imagined in the absence of the physical presence of it.

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Long-Term Memory

The aspect of our memory system that is capable of storing a vast amount of information for periods ranging from minutes to a lifetime.