College Students and Faculty Members Have a More Elastic Demand

question 242

Multiple Choice

College students and faculty members have a more elastic demand than the general public for Apple's iMac desktop computers.From this we can conclude that

• A)Apple will charge college students and faculty members higher prices than it charges the general public.
• B)Apple will charge college students and faculty members lower prices than it charges the general public.
• C)the general public will earn arbitrage profits by buying iMac desktop computers from Apple and reselling them to college students and faculty members.
• D)Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members.

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Definitions:

Continuous Random Variables

Variables that can take on an infinite number of values within a given range, typically associated with measurements.

Taco Bell

A fast-food restaurant chain specializing in Mexican-inspired foods such as tacos, burritos, and quesadillas.

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Discrete Random Variables

Variables that take on a countable number of distinct and separate values, often resulting from counting processes.