Professor Kremepuff has published a new textbook. This book will be used in classes for two years, at which time it will be replaced by a new edition. The publisher charges a price of $p₁ in the first year and $p₂ in the second year. After the first year, bookstores buy back copies from students for $ and resell them to students in the second year for $p₂. (Students are indifferent between new and used copies.) The cost to a student in the first year of owning the book for a year is therefore $(p₁ - ). In the first year of publication, the number of students willing to pay $v to own the book for a year is 70,000 - 1,000v. The number of students taking the course in the first year who are willing to pay at least $w to keep the book for reference rather than resell it is 70,000 - 5,000w. In the second year, the number of students who have not previously taken the course and are willing to pay at least $p for a copy of the book is 60,000 - 1,000p. If the publisher sets a price of $p₁ in the first year and $p₂ in the second year, with p₁ B3 p₂, then the total number of copies that the publisher sells over two years will be equal to A) 130,000 - 1,000(p₁ +). B) 140,000 - 1,000(p₁ -). C) 140,000 - 1,000p₁ - 1,000p₂. D) 140,000 - 3,000p₂. E) 130,000 - 1,500p₂.

Question

Quizplus · Accepted Answer

The Answer of Professor Kremepuff has published a new textbook. This book will be used in classes for two years, at which time it will be replaced by a new edition. The publisher charges a price of $p₁ in the first year and $p₂ in the second year. After the first year, bookstores buy back copies from students for $ and resell them to students in the second year for $p₂. (Students are indifferent between new and used copies.) The cost to a student in the first year of owning the book for a year is therefore $(p₁ - ). In the first year of publication, the number of students willing to pay $v to own the book for a year is 70,000 - 1,000v. The number of students taking the course in the first year who are willing to pay at least $w to keep the book for reference rather than resell it is 70,000 - 5,000w. In the second year, the number of students who have not previously taken the course and are willing to pay at least $p for a copy of the book is 60,000 - 1,000p. If the publisher sets a price of $p₁ in the first year and $p₂ in the second year, with p₁ B3 p₂, then the total number of copies that the publisher sells over two years will be equal to A) 130,000 - 1,000(p₁ +). B) 140,000 - 1,000(p₁ -). C) 140,000 - 1,000p₁ - 1,000p₂. D) 140,000 - 3,000p₂. E) 130,000 - 1,500p₂.

Professor Kremepuff Has Published a New Textbook