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Question
Restaurants, bars, and convenience stores are often located near college campuses. These businesses frequently charge higher than normal prices. They are taking advantage of the fact that students
a. are able to pay higher prices than the rest of the population, so the businesses can charge higher prices than they otherwise would have been able to charge.
b. are unable to pay higher prices than the rest of the population, but they are able to succeed because they can sell to a large number of people.
c. place a high value on their scarce time and are willing to pay higher prices than they would at locations farther from campus.
d. place a low value on their scarce time and are willing to pay higher prices than they would at locations farther from campus.
e. place a high value on their scarce time and are unwilling to pay higher prices.
Answer
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