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

question 12

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 60,000 - 500v. 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 60,000 - 2,500w. 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 40,000 - 500p. 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

Definitions:

Minimum Wage

The lowest legally permissible amount of money that workers can be paid by employers for their labor, determined by law or contract.

Nikefication

A term referring to the adaptation of a brand's marketing strategies across different cultures and communities, often associating with the global expansion practices of companies like Nike.

Uberization

The transformation of traditional industries in the way that Uber has revolutionized the taxi business, emphasizing platforms that connect consumers directly with providers of goods or services.

Negatively Affects

To have an adverse impact on something, resulting in harm, deterioration, or reduction in quality or value.