Textbook analysis of selling e-books as well as hardcover books

3unpose now that the publisher realizes the damaging effect of the market for used textbooks on its revenue. Market research suggests hat on average. between editions, the price of an economics textbook declines bv approximately:r 50%. To oifset the potential damage :o revenue. the publisher decides to selt both the printed textbook at $140 and an eiectronic version of the textbook at a competitive nice of $4D. which is approximatelv 75% less than the price of a new textbook. By design. ehooks offer the same content along with a lumber of advanced features such as highlighting the text, searching, and bookmarking. To obtain an ebook, students must purchase a Jersonaiized access code that absolutelyr cannot be resold or transferred. The following graph shows the demand curve for new economics textbooks, which is more elastic than when the new textbook was available onlyr in print form (as shown on the previous graph]. This is because now the new printed book has a substitutea new ebook. Use the purple rectangte (diamond symbofs) to shade the area representing the revenue the publisher shoufd expect from setting printed textbooks In 2019. Next, use the green rectangle (triangle symbols) to shade the area representing the revenue the puhh'sher shoul'd expect by offering the e- 15ka in 2M9. Then answer the question that follows. The market for new economics textbooks (Print and e-book) 180 160 Print Revenue 140 120 E-book Revenue 100 PRICE OF E-BOOK (Dollars per copy) Demand 80 80 40 20 0 20 40 60 80 100 120 140 160 180 QUANTITY OF ECONOMICS TEXTBOOKS (Thousands of copies) By offering e-books at $40, the publisher will sell copies of e-books and generate $ in revenue. At the same time, copies of new printed textbooks will be sold, which will generate $ in revenue