The Price of a New Model of IPod Tends to Fall

question 78

Multiple Choice

The price of a new model of iPod tends to fall significantly a year after it is introduced.Suppose Jane bought an iPod as soon as it was introduced (a year ago) and paid a premium price for it.Now she wants to buy an iPod cover.Which of the following should she consider before buying the new accessory?

• A)the price she paid for her iPod, the price of the iPod cover, and the benefit she'll receive from using the iPod cover
• B)The price of replacing her iPod, the price of the iPod cover, and the benefit she'll receive from using the iPod cover
• C)the price of the iPod cover and the benefit she'll receive from using the iPod cover
• D)The price of the iPod cover had she bought it with the iPod, the current price of the iPod cover, and the benefit she'll receive from using the iPod cover

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Definitions:

Oral

Pertaining to words spoken, rather than written, used for communication.

Stop-Payment Order

An instruction given to a bank by an account holder not to pay or to halt a payment that has been issued on a check or an electronic withdrawal.

Authorized

Having official permission or approval to do something.

Drawer

In a transaction involving a check or draft, the drawer is the party that writes and signs the check, ordering the bank to pay a specified sum to the payee.