Solved

Jamal,Lawson and Kyle Have Been Standing in Line for Almost

question 250

Multiple Choice

Jamal,Lawson and Kyle have been standing in line for almost an hour waiting to be served at Kirala,a popular new Japanese restaurant.It is possible that some of the people in line won't be served at all before the restaurant closes.Which of the following could explain why the restaurant does not simply raise prices high enough to eliminate the lines?
a.In situations where consumption takes place publicly,demand for the product is also influenced by how many other people are buying the product.Consequently,a popular restaurant that increased its prices enough to eliminate lines might find that it had also eliminated its popularity.
b.Firms may sometimes not raise their prices for fear that it violates people's sense of fairness and might alienate customers.
c.The demand for restaurant meals is relatively elastic and if the firm raise prices it will lower its profits.

Definitions:

Emotional Trauma

Psychological damage that occurs as a result of a distressing event, which overwhelms an individual's ability to cope, causing feelings of helplessness.

Childhood Sexual Wishes

Refers to the early stages of psychosexual development, where children begin to develop unconscious desires and attractions.

Erogenous Zones

Areas of the body that experience heightened sensitivity and can lead to sexual arousal when stimulated.

False Memories

Memories that are either distorted or entirely fabricated, but are believed to be true by the person recalling them.