Assume that the cost of producing a hardback book is roughly equivalent to producing a paperback book. Explain how and why then do publishing companies charge higher prices for the hardback book and a much lower price for the paperback book
What will be an ideal response?
The hardbound book version typically comes out before the paper bound version is made available. Consumers who have a higher ability and willingness to pay and an aversion to waiting will pay a higher amount of the hardbound version. Those who have a lower ability to pay and a willingness to wait will delay purchase of the book until the paperback version comes out.
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Most LDCs face the problems of low population growth and excessive saving
a. True b. False Indicate whether the statement is true or false
Which of the following are reasons that banks are so heavily regulated?
a. Governments are concerned about the safety of deposits. b. The industry is a principal determinant of aggregate demand. c. Bank failures are contagious. d. All of the above are correct.
The theory of liquidity preference postulates that the demand for real money balances, plotted against the interest rate, is:
a. vertical. b. downward sloping. c. horizontal. d. upward sloping.
The demand for ice cream is ________ than is the demand for frozen treats because ________.
A. more price elastic; the scope of the market for ice cream is less broadly defined B. more price elastic; ice cream requires a smaller portion of one's income C. less price elastic; the scope of the market for ice cream is less broadly defined D. less price elastic; ice cream requires a smaller portion of one's income