At a price of $4.95, a pulp fiction novel is expected to sell 9,000 copies. If the novel is offered for sale at a price of $3.95, then the publisher can expect to sell
A) fewer than 9,000 copies.
B) 9,000 copies.
C) more than 9,000 copies.
D) It is impossible to predict the effect of a lower price on sales.

Question

Quizplus · Accepted Answer

Lowering the price of a product, in this case, a pulp fiction novel, generally leads to an increase in the quantity sold. This is because the product becomes more affordable to a larger number of consumers, thereby increasing demand.

At a Price of $4