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:

Irrigation Systems

Engineered networks designed to transport water to areas where it is needed for agricultural production, improving crop yields in arid and semi-arid regions.

Pueblo Indians

Native American people, historically known for living in pueblo-style dwellings, primarily located in the Southwestern United States.

Agricultural Production

The process and science behind the cultivation of plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.

Southwestern United States

A region of the United States that includes states like Arizona, New Mexico, Texas, and parts of California and Nevada.