The Price Elasticity of Demand for Senior Citizens Purchasing Coffee

question 38

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 is cost McDonald's $0.02 to produce a coffee, the optimal price for a cup of coffee for non senior citizens and 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.

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Definitions:

Self-Esteem

A person's overall subjective emotional evaluation of their own worth or the degree to which they value themselves.

False Confessions

Admissions of guilt for a crime one did not commit, which can be the result of various factors, including coercion, fatigue, or the misinterpretation of evidence.

Adolescent Smokers

Young individuals, typically in their teenage years, who regularly engage in smoking tobacco, which poses significant health risks.

Legal Smoking Age

The minimum age at which an individual is legally permitted to purchase and consume tobacco products in a particular jurisdiction.