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Songwriters and Composers Press Music Companies to Lower the Price

Question 26

Multiple Choice

Songwriters and composers press music companies to lower the price for music downloads because


A) demand for on-line music is inelastic
B) profits are maximized where price elasticity of demand is -1.0
C) songwriter royalties are a percentage of sales revenue
D) profits and total revenue are maximized at different quantities
E) profits are maximized at the same prices as sales revenue

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