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:

Storage

The process of retaining information over time in memory.

Rehearsal

The cognitive process of repeatedly practicing or reviewing material to enhance memory retention.

Five-Dollar Bill

A banknote valued at five units of currency, typically issued by national governments.

Encoding Failure

A situation in which information does not enter the brain's long-term memory and is thus forgotten.