Chapter 19, Problem 4E

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 demand for e-books?