(Consider This) Augi is the hottest new pop singer, but her agent discovers that Internet sales of Augi's music have been poor due to Internet piracy. However, concerts are regularly sold out and merchandise (such as T-shirts) sells well. If Augi wants to enhance profits, economists would most likely recommend that she

Question

Quizplus · Accepted Answer

Since Internet piracy has affected Augi's music sales negatively, the best option would be to keep prices of downloads low to attract customers and thereby increase sales. However, there is a high demand for concerts and merchandise, which means Augi can afford to raise prices for these products to boost profits. This strategy is likely to result in a higher profit margin overall.

(Consider This) Augi Is the Hottest New Pop Singer, but Her