Suppose that at a price of $1 per subscription, 100,000 subscriptions are demanded for The Post-Standard (the major daily newspaper servicing the greater Syracuse, New York). But, if the price is raised to $1.1, demand is 70,000 subscriptions. As the head of the analytic team, will you suggest to the editor of Post- Standard that an increase in subscription price will not significantly influence consumer demand? E = |-3|>10Elastic demand (an increase in subscription price will significantly influence consumer demand)
Suppose that at a price of $1 per subscription, 100,000 subscriptions are demanded for The Post-Standard (the major daily newspaper servicing the greater Syracuse, New York). But, if the price is raised to $1.1, demand is 70,000 subscriptions. As the head of the analytic team, will you suggest to the editor of Post- Standard that an increase in subscription price will not significantly influence consumer demand? E = |-3|>10Elastic demand (an increase in subscription price will significantly influence consumer demand)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that at a price of $1 per subscription,
100,000 subscriptions are demanded for The
Post-Standard (the major daily newspaper
servicing the greater Syracuse, New York).
But, if the price is raised to $1.1, demand is
70,000 subscriptions. As the head of the
analytic team, will you suggest to the editor of
Post- Standard that an increase in
subscription price will not significantly
influence consumer demand?
E = |-3|>10Elastic demand (an increase in
subscription price will significantly influence
consumer demand)
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