In Exchange for a Share of the Revenues Earned on Campus

question 9

Multiple Choice

In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for:

• A)75 cents because that is the market price.
• B)less than 75 cents because CheapFizz will have greater volume and so can lower its price.
• C)more than 75 cents because the demand curve for CheapFizz soda will shift to the left.
• D)more than 75 cents because CheapFizz is the only company that can sell soda on campus.

---

Definitions:

Infant Child

Refers to a very young child or baby, typically under one year of age.

Domestic Chores

Tasks and activities performed within the home, such as cleaning, cooking, and maintenance, typically for the upkeep and management of the household.

Present

The period of time that is happening now, or a gift, or to formally introduce or offer something.

Infant Care

The practices and routines involved in looking after the basic needs of babies, including feeding, sleep, hygiene, and safety.