Question

Amazon allows authors who self-publish their e-books to set the prices they charge. One author is quoted as saying, "I am able to drop prices and, by sheer volume of sales, increase my income." The demand for this author's book was price __________________

Answer 1

Answer:

Price elastic.

Explanation:

In economics, elasticity refers to the measure of response of how a change in one factor will affect another.

Price elasticity is an example. Where a change in the price of an item increases the demand and supply of the item

In this case, the Author was able to increase volume of sales and increase income by dropping the price of the book.

Therefore the demand of the book was price elastic.