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April 18, 2014

Homework Help: economics

Posted by maggie on Friday, October 23, 2009 at 2:37pm.

In the article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paperís publisher rejected the idea, saying that circulation could drop sharply after price increase, citing, The Wall Street Journalís experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elastici

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