According to an article in the Wall Street Journal, some small publishers have argued that Amazon has been increasing the prices it sells their books for on its Website

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According to an article in the Wall Street Journal, some small publishers have argued that Amazon has been increasing the prices it sells their books for on its Website. Amazon was increasing the prices by reducing the discount it offered consumers on the retail prices of the books. One small nonfiction publisher said that Amazon had reduced the discount on its books from about 30% to about 16%. According to the author of the article: "For this publisher, that means less revenue and less profit as some buyers reject the more expensive books."

1. Some buyers will no longer buy the publisher's books at a higher price. The publisher will earn less revenue only if

A. they don't scale back.

B. they don't market properly.

C. sales fall slightly.

D. sales fall significantly.

2. The author's statement would be correct if the price elasticity of demand for the publisher's books is

A. equal to one in absolute value.

B. less than one in absolute value.

C. more than one in absolute value.

D. equal to zero.