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Suppose in Baltimore there are two different internetproviders: Provider A and Provider B. Consider the following information about a consumer named Ted: Ted has the
Suppose in Baltimore there are two different internetproviders: Provider A and Provider B. Consider the following information about a consumer named Ted:
- Ted has the same demand equation for internetregardless of which company he uses(e.g. P = 100 - Q).
- No matter which company he chooses, he pays the sameaverageprice at both providers (e.g. P =20).
- However, he ultimately consumes two different quantities depending on whether he uses Provider A or Provider B.How is this possible?
Explain your answer in no more than 200 words (it is possible to answer the question in 2 sentences or less).
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