College students and faculty members have a more elastic demand than the general public for Apple's MacBook Pro laptop 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 MacBook Pro Laptop 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.

Question

Quizplus · Accepted Answer

Since college students and faculty members have a more elastic demand, it means they are more sensitive to changes in price. Therefore, Apple is likely to offer these groups lower prices in order to capture their business. This is a common pricing strategy used by companies to increase sales to price-sensitive customers.

College Students and Faculty Members Have a More Elastic Demand