Quote:
Originally Posted by fjtorres
A recent Smashwords post by Mark Coker presents a case arguing that eBook price elasticity is very high and that a 70% cut in price can result in a 500% percent increase in sales volume. (Six times total sales at the lower price than at the higher.)
http://blog.smashwords.com/2012/07/h...ould-harm.html |
This assumes that the demand function is linear and most economists would suggest it behaves as if it is linear for small changes. But, what you have quoted is a large change.