Professor Kremepuff's New, User-Friendly Textbook Has Just Been Published

question 14

Multiple Choice

Professor Kremepuff's new, user-friendly textbook has just been published. This book will be used in classes for two years, after which it will be replaced by a new edition. The publisher charges a price of p₁ in the first year and p₂ in the second year. After the first year, bookstores buy back used copies for and resell them to students in the second year for p₂. (Students are indifferent between new and used copies.) The cost to a student of owning the book during the first year is therefore p₁ - . In the first year of publication, the number of students willing to pay $v to own a copy of the book for a year is 80,000 - 1,000v. The number of students taking the course in the first year who are willing to pay $w to keep the book for reference rather than sell it at the end of the year is 80,000 - 5,000w. The number of persons who are taking the course in the second year and are willing to pay at least $p for a copy of the book is 75,000 - 1,000p. If the publisher sets a price of p₁ in the first year and p₂ <= p₁ in the second year, then the total number of copies of the book that the publisher sells over the two years will be

• A) 160,000 - 1,000p₁ - 1,000p₂.
• B) 160,000 - 1,000(p₁ -).
• C) 160,000 - 3,000p₂.
• D) 155,000 - 1,000(p₁ +).
• E) 155,000 - 1,500p₂.

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Definitions:

Articles of Incorporation

Legal documents filed with a state government to legally establish a corporation.

Shareholder Approval

The process by which shareholders vote to approve or reject proposed actions by a corporation, often required for major decisions or changes.

Corporate Assets

Resources or valuables owned by a corporation, which can include cash, equipment, property, and intellectual property.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters and receiving dividends.