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E-books are highly price-elastic. For every copy of an e-book sold at $16.00, 75% more copies would have been purchased if the price had been
E-books are highly price-elastic. For every copy of an e-book sold at $16.00, 75% more copies would have been purchased if the price had been $10.00. If customers would buy 10,000 copies of a particular e-book when priced at $16.00, which price point produces lower revenue? The $16.00 price point yields $15,000 less in revenue than at $10.00. The $10.00 price point yields $175,000 in revenue. The $10.00 price point yields $15,000 less in revenue than at $16.00. The revenue from both price points would be the same
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