Consider a new platform.

The demand for a product's adoption via a new platform is induced entirely by positive network effects. In particular, there are 1000 potential consumers with the same willingness to pay. A consumer's valuation is $0 if there are strictly fewer than 400 consumers adopting the product. However, if at least 400 consumers have adopted then each consumer's valuation jumps up to $1500.

What is the statement that describes demand under consumers' rational expectations (that is, self-fulfilling expectations)?

Group of answer choices

a) The demand is either 0 or 400 for prices below $1500 and 0 for prices above $1500.

b) For any price less or equal than $1500, demand is either 0 or 1000. For prices above $1500 demand is 0.

c) The demand is 400 for prices below $1500 and zero for prices above $1500.

d) The demand will always be zero, regardless of the price.

e) The demand will always be positive regardless of the price.