Suppose there are two types of e-book consumers: 100 standard consumers with demand Q = 20 -

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Suppose there are two types of e-book consumers: 100 “standard” consumers with demand Q = 20 - P and 100 “rule-of-thumb” consumers who buy 10 e-books only if the price is less than $10. (Their demand curve is given by Q = 10 if P < 10 and Q = 0 if P > 10.) Draw the resulting total demand curve for e-books. How has the “rule-of-thumb” behavior affected the elasticity of total demand for e-books?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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