To Enhance Their Prestige, Some Country Clubs Like to Point

question 345

Multiple Choice

To enhance their prestige, some country clubs like to point to the fact that they have a waiting list for new members. Even at clubs with high initiation fees, it is common that prospective members have to wait three or more years before there is room for them on the membership rolls. How do these country clubs set the price of membership to ensure that they have a waiting list?

• A) Set the membership price above the market clearing price.
• B) Set the membership price below the market clearing price.
• C) Set the price so that the quantity supplied of memberships exceeds the quantity demanded.
• D) Set the price at a level that will generate a surplus of memberships.

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Definitions:

Real-Life Application

Real-Life Application refers to the utilization of theoretical knowledge or concepts in practical, everyday situations.

Ethics

Ethics involves the systematizing, defending, and recommending concepts of right and wrong behavior, often guided by moral principles.

Bystander Effect

The phenomenon where individuals are less likely to offer help to a victim when other people are present.

Diffusion Of Responsibility

Occurs when a person fails to take responsibility for actions or for inaction because of the presence of other people who are seen to share the responsibility.