=+12. Suppose there are two types of e-book consumers: 100 standard consumers with demand Q 5 20

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=+12. Suppose there are two types of e-book consumers: 100

“standard” consumers with demand Q 5 20 2 P and 100 “rule of thumb” consumers who buy 10 e-books only if the price is less than $10. (Their demand curve is given by Q 5 10 if P , 10 and Q 5 0 if P $ 10.) Draw the resulting total demand curve for e-books. How has the “rule of thumb” behavior affected the elasticity of total demand for e-books?

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Microeconomics

ISBN: 9781292081977

8th Global Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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