Most of the cost is in labor to write and edit the book, which still needs to happen for ebooks.
An ebook is searchable, gives me instant access to a dictionary, doesn't take up space in my house, I can read in the dark, it's more comfortable to hold, and I can set the font to a size that works for my aging eyes. That $10 ebook of The Dog Stars is a much better value for me than a $4 paperback copy.
Paper books have their place too. For example, I want physical cookbooks that I can leave open on a stand as I work in the kitchen.
1. I don't have to store all the physical books I would have acquired over the decades.
2. I can carry around a large number of those beloved books with me at all times.
3. I can vary the font size, which my ageing eyes appreciate.