The best-selling mystery To the Nines by Janet Evanovich was sold in hardcover for $25.95 when it was released. One year later, the publisher issued a softcover edition for $7.99. If the marginal cost of printing a softcover book is not much less than the marginal cost of printing a hardcover, the pricing difference:
A. is probably due to price discrimination in which the seller charges a higher price to consumers with less elastic demand.
B. must be due to a difference in fixed costs.
C. is probably due to price discrimination in which the seller charges a higher price to consumers with a more elastic demand.
D. cannot be explained by economic theory.
Answer: A
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