Suppose the Absolute Price Elasticity of Demand for Newsletter Subscriptions

question 308

Multiple Choice

Suppose the absolute price elasticity of demand for newsletter subscriptions is 1.3. In order to increase the total revenues from subscriptions, the publishers should

• A) increase the price of the newsletters.
• B) reduce the price of the newsletters.
• C) sell the newsletters on the inelastic portion of its demand curve.
• D) keep the price the same.

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Definitions:

Spiraling Failure

A situation where a series of failures reinforce one another, leading to a deteriorating condition.

Mission Devolution

The process of delegating operational responsibilities and decision-making authority from central leadership to local offices or departments within an organization.

Retrenchment

A strategy used by organizations to reduce their scale or scope in response to financial pressures, often involving cost-cutting measures and reductions in workforce.

Organizational

Relating to the structure or functioning of an organization or the collective group organized for a particular purpose.