The Price Elasticity of Demand for Senior Citizens Purchasing Coffee

question 99

Multiple Choice

The price elasticity of demand for senior citizens purchasing coffee from McDonald's is −5,while non-senior citizens have a price elasticity of demand equal to −1.25.If it costs McDonald's $0.02 to produce a coffee,the optimal price for a cup of coffee for non-senior citizens and the resultant marginal cost under third-degree price discrimination are:

• A) $0.004 and $0.02.
• B) $0.02 and $0.80.
• C) $0.10 and $0.02.
• D) $10 and $0.20.

---

Definitions:

Leadership Success

Achieving desired results and objectives through effective guidance and inspiration of others.

Intelligence

The capacity for learning, understanding, and applying knowledge, as well as the ability to reason and solve problems.

Honesty

Refers to the quality of being truthful, sincere, and free of deceit or fraud.

Change Competency

The capability of individuals or organizations to effectively manage and adapt to changes within their environment or within themselves.