Price discrimination increase or decrease publishers profit

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The price elasticity of demand for hardback is 0.5 and the price elasticity of demand for paperback is 2. Suppose the publisher increases the price for hardback by 10% and decreases the price of paperback by 10%. Complete the following table. Does price discrimination increase or decrease the publisher’s profit? A publisher initially prices both hardback books and paperback books at $20 per book. Each book costs $2 to produce.

Reference no: EM13833603

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