Lukeisbackcom

understand that if a producers drops his wholesale price from $10 to $8 per DVD, it is not going to affect his sales. Conversely, if he raises his price from $8 to $10 per DVD, it is not going to affect sales (assume that the quality stays the same).

I believe the elasticity kicks in with catalog pricing. A $1.50 price versus a $2.50 for some catalog titles will generate a significant increase in orders. This is why pricing has continued to fall on older titles, and many companies have gone as low as they can go without losing money.

If the demand for porn is inelastic (meaning that it does not change much with variations in price), then prohibition is a bad way to try to control things.

I remember that when I was a kid, I'd walk several miles through the woods if there was a chance of finding a nudie magazine.

Throughout my life, whenever I have achieved satisfaction from porn, my interest in porn has dwindled to zero (except for work purposes).

lukeisback.com
en.wikipedia.org/wiki/Elasticity
home.uchicago.edu/~gbecker/illegalgoods_Becker_Grossman_Murphy.pdf