Comment on the following scenario:
Librarians have long complained about the price rises of academic journals and Derek Haan chairman and chief executive of Elsevier Science, which publishes more than 1,600 journals, admits that journal price inflation has been a problem for the industry. He says the problem is due to falling subscription numbers as more readers make photocopies or use interlibrary lending. With fewer subscribers to share the cost of each publication, publishers have to increase prices. To stay within budgets, libraries start cancelling titles, which creates a vicious circle of dwindling subscriber numbers, soaring prices and reduced collections. Naturally, with fixed budgets, there is significant price elasticity of demand as far as the libraries are concerned.