Draw the resulting total demand curve for e-books

Reference no: EM13902507

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?

Reference no: EM13902507

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