7) At one time, Barnes & Noble's e-reader, the Nook, was a popular competitor of the Amazon Kindle. In a July 2013 article, the Wall Street Journal reported that the quantity of Kindles sold "tripled since [Amazon] lowered its price to$189 from$259 last month." Later in the article, the reporter also noted that Barnes & Noble had cut the price of its Nook e-reader at about the same time that Amazon reduced the price of the Kindle. Using the information in this article to estimate the demand curve for Kindles but failing to take into account the change in the price of Nooks would do with of the following? (This is a multiple-choice question: please choose the single best answer and explain your choice. Draw a graph to support your answer.)

A. Cause the estimated demand to be more elastic than the actual demand for Kindles. B. Not affect the accuracy of the estimated demand for Kindles.

C. Cause the estimated demand to be less elastic than the actual demand for Kindles. D. Cause Amazon to leave Kindle prices unchanged.

E. Cause the estimated elasticity to go from inelastic to elastic.