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Q. In an article about the financial problems of USA Today, News week reported which the pa per was losing about $20 million a yr. A Wall Street analyst said which the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a yr. The paper's publisher rejected the idea, saying which circulation could drop sharply after a price increase, citing The Wall Street Journal's experience after it increased its price to 75 cents. Illustrate what implicit assumptions is the publisher also the analyst making about price elasticity?
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