Paper Topic:

Will Burys

Running head : WILL BURYS

Introduction

Will Bury 's investigations into the effect of price changes on the demand for unique online products revealed an increase in price translated to a large increase in demand . This situation suggests that products targeted at a niche market face a price inelastic demand curve a small change in price results in a high increase in demand . The reverse is true when there is a fall in the price of a product a price fall leads to a reduction in demand . Bury can increase his income by

br raising the price of digital books and targeting the affluent sections of society in his advertising campaigns . In a monopolistic market , a monopolist can restrict supply so as to create a temporary shortage and thus push up the prices of commodities . By closely controlling his innovation , Bury can continue to reap high profits by selling digital book with a realistic synthetic voice

The amount of revenue generated will be dependant on the elasticity of demand as depicted by the demand arc created by the intersection of quantity demanded at different prices . At any two points along the curve , a higher price will intersect the demand arc at a higher quantity demanded . Conversely , a lower price will relate to lower quantities demanded . This situation shall prevail as long as Bury can monopolize the use of his invention and lock out the competition from encroaching into his market . The elasticity of demand calculated using this method will be greater than...

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