College Students and Faculty Members Have a More Elastic Demand

question 176

Multiple Choice

College students and faculty members have a more elastic demand than the general public for Apple's MacBook Pro laptop computers.From this we can conclude that

• A)Apple will charge college students and faculty members higher prices than it charges the general public.
• B)Apple will charge college students and faculty members lower prices than it charges the general public.
• C)the general public will earn arbitrage profits by buying MacBook Pro Laptop computers from Apple and reselling them to college students and faculty members.
• D)Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members.

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Definitions:

Control

The ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset.

Contingent Liability

A potential obligation that may arise depending on the outcome of an uncertain future event, which is not confirmed at the date of the financial statements.

Fair Value

What would be pocketed from an asset sale or the price to offload a liability during a methodical engagement with market individuals on the day of measurement.

Present Obligation

A duty or responsibility to act or perform in a certain way.