A computer shop offers tablets to students, at a 50% discount, if students show their student card when they buy. Even with this discount, the owner still makes a profit from every unit sold to a student. The shop owner is very happy with the increased sales to students. However, after a few days the owner notices that sales to non-students have decreased. What has happened?
A computer shop offers tablets to students, at a 50% discount, if students show their student card when they buy. Even with this discount, the owner still makes a profit from every unit sold to a student. The shop owner is very happy with the increased sales to students. However, after a few days the owner notices that sales to non-students have decreased. What has happened?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 1.5CE
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A computer shop offers tablets to students, at a 50% discount, if students show their student card when they buy. Even with this discount, the owner still makes a profit from every unit sold to a student. The shop owner is very happy with the increased sales to students. However, after a few days the owner notices that sales to non-students have decreased. What has happened?
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