Suppose that a Jarir bookstore manager, believes that there is no difference between charging US$22 and US$23 for the English version of Naguib Mahfouz's novel The Cairo Triology. He is convinced that the number of copies sold would be the same under both prices. The Jarir bookstore manager's argument suggests that
A) publishers can set any price they like for books.
B) the price elasticity of demand for books is highly inelastic.
C) the price elasticity of demand for books is highly elastic.
D) price is no object for English versions of Arabic books.

Question

Quizplus · Accepted Answer

The manager's belief that changing the price from $22 to $23 will not affect the number of copies sold suggests that the demand for this book is inelastic, meaning consumers' purchasing decisions are not significantly affected by a small price change.

Suppose That a Jarir Bookstore Manager, Believes That There Is