An Elastic Demand
When demand is elastic, lowering the price increases revenue. In this case, a lot.
...when he lowered the price of his book The List from $2.99 to 99 cents, he started selling 20 times as many copies — about 800 a day, turning his loss lead into his biggest earner.
It helps that the marginal cost is essentially zero.
HT: Instapundit
Labels: microeconomics
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home