2.7 In 2000, all major newspapers in Hong Kong raised their prices from HK$5 to HK$6, representing a 20 percent increase. They anticipated that revenues would also increase by about 20 percent as a result. They were disappointed, however, that after the price hike, revenues increased by only 10 percent. What can you infer about the elasticity of demand for newspapers?

What were publishers assuming about the elasticity of demand?