You are right about needing to teach externalities very carefully. The increase in price from someone new starting to buy books, tho, IS an externality-- just a pecuniary externality instead of a real externality, and only real externalities reduce efficieecy. It is crucial to teach the difference, a difficult idea. https://rasmusen.org/regulation/ is something you might like.
What is Wrong with Econ 101?
You are right about needing to teach externalities very carefully. The increase in price from someone new starting to buy books, tho, IS an externality-- just a pecuniary externality instead of a real externality, and only real externalities reduce efficieecy. It is crucial to teach the difference, a difficult idea. https://rasmusen.org/regulation/ is something you might like.