You are a manager in charge of monitoring cash flow at a major publisher.Paper books comprise 40 percent of your revenues, which grow about 2 percent annually.You recently received a preliminary report that suggests the growth rate in ebook reading has leveled off, and that the cross-price elasticity of demand between paper books and ebooks is -0.3.In 2016, your company earned about $600 million from sales of ebooks and about $400 million from sales of paper books.

If the own price elasticity of demand for paper books is -2, how will a 4 percent decrease in the price of paper books affect your overall revenues from both paper books and ebooks sales?

Instruction:Enter your response rounded to one decimal place.

Your overall revenues will change by $million.