Its possible to buy many books either as print, or physical, books or as digital books. a.

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It’s possible to buy many books either as print, or physical, books or as digital books.

a. If the price of digital books rises, what would you expect to happen to the demand for print books? Briefly explain. 

b. The goal of the Google Books project is to produce a digital version of every book ever written. An academic paper by Abhishek Nagaraj of University of California, Berkeley and Imke Reimers of Northeastern University analyzed the effect of Google Books on the market for print, or physical, books. They concluded that for their sample of books, “Digitization . . . increased sales of physical editions by about 35%, especially for less popular works.” Does this paper indicate that digital books and print books are substitutes or complements? Briefly discuss what might account for this result and why it differs from the answer you gave to part (a).  

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Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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