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:

Antitrust Law

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive business practices.

Regulatory Standards

Established rules and specifications issued by authoritative bodies to ensure products, services, or processes meet specific requirements.

Clayton Act

A U.S. law enacted in 1914 aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Antitrust Act.

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple, often competing, companies.