Book Pricing and Elasticity of Demand. a. A publisher initially prices both hard
ID: 1227291 • Letter: B
Question
Book Pricing and Elasticity of Demand. a. A publisher initially prices both hardback books and paperback books at $20 per book. The hardback version comes out first, followed two months later by the paperback version. The publisher initially sells the same number of hardbacks and paperbacks (100 each). Each book costs $2 to produce. Complete the following table. (Enter your responses as integers.)
Price Quantity Total Rev Total Cost Profit
Hardback $20 100 ______ ______ ______
Paperback 20 200 ______ ______ _______
Total ____ 200 _______ _______ ________
Explanation / Answer
Price Quantity Total Rev Total Cost Profit @ $2/Units Total Rev- Total Cost Hardback 20 100 2000 200 1800 Paperback 20 100 2000 200 1800 Total ____ 200 4000 400 3600