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

question 270

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 raises prices it will lower its profits.

Distinguish between different types of goods and their impact on consumer utility.

Analyze the impact of specialized pricing schemes on consumer demand and utility.

Understand the principles behind optimal choice and utility maximization.

Apply knowledge of microeconomics to analyze real-world consumer behavior scenarios.

Definitions:

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm in a lab dish, after which the embryo is transferred to a uterus.

Insemination

The intentional introduction of sperm into a female's reproductive tract for the purpose of achieving pregnancy through means other than sexual intercourse.

Embryo Transferred

A step in the in vitro fertilization process where a fertilized egg, or embryo, is placed into a woman's uterus with the goal of establishing a successful pregnancy.

Second-Stage Labor

The phase of labor during childbirth when the woman actively pushes to help the baby move down the birth canal.