Sunday
September 21, 2014

Homework Help: price elasticity

Posted by raja on Saturday, October 16, 2010 at 10:38am.

In an article about the financial problems of USA Today, Newsweek reported that the pa-per was losing about $ 20 million a year. AWall 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 additional $65milliona year. The paperís publisher rejected the idea, saying that circulation could drop sharply after a 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 elasticity?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

ECONOMICS - In an article about the financial problems of USA Today, Newsweek ...
economics - 1. In an article about the financial problems of USA Today, ...
Managerial Economics - In an article about the financial problems of USA Today...
home economics - In an article about the financial problems of USA Today, ...
Manageral Economics (Economyst Only Please) - In an article about the financial ...
economics - In an article about the financial problems of USE Today, Newsweek ...
economics - In the article about the financial problems of USA Today, Newsweek ...
Economics - I think I get this but could use some guidance to make sure, I am ...
math - The federal minimum wage is $7.25 per hour. a. How much will a worker at ...
Statistic Help please - During a given month, P(A)=0.75,P(B)=0.6, and p(A and B...

Search
Members