Price Elasticity of Library Photocopies |
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| Abstract: | The law of demand is the basic tenet of economic theory which states that, other things being equal, more of an item will be bought, the lower its price and less will be bought, the higher its price. This was demonstrated dramatically at Jacksonville State University when the library photocopy service reduced the cost of copies from 10¢ to 5¢. Over the course of two years, the number of copies purchased more than doubled after the price was halved. After adjusting for other variables, such as fluctuating enrollments and the addition of another copier, unitary price elasticity, or a one-to-one inverse ratio of price to quantity, was evident. The user benefit of the price reduction was obvious, while the fact that the photocopy service provider continues to renew the contract at the reduced price indicates that the service remains profitable. |
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