Question

How would each of the following events affect the demand for new textbooks? I. The price...

How would each of the following events affect the demand for new textbooks? I. The price of a used textbook rises. II. The price of college tuition rises. III. More high school graduates decide to attend college.

Homework Answers

Answer #1

1. Used textbooks and new textbooks are substitutes to each other. With an increase in price of used textbooks, the demand for used textbooks reduces and the demand for new textbooks increases.

2. As the price of college tution rises, less of new textbooks will be demanded as many students will not enroll for college studies. Collge service and new textbooks are complementary to each other. If collge fee increases, less students take admission and hence, less of new textbook is demanded.

3. When more students decide to attend collge, demand for college admissions as well as new textbooks rises. Demand for textbooks increases.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5. Indicate how each of the following events would affect the aggregate demand AD curve: a...
5. Indicate how each of the following events would affect the aggregate demand AD curve: a short-run decrease in the price level an increase in consumer confidence on the price level and real GDP an increase in government purchases
1) Briefly indicate how you would expect each of the following events to affect the US...
1) Briefly indicate how you would expect each of the following events to affect the US supply of turkeys and explain your reasoning. The supply elasticity is 0.40 (5 points each). a. A 20% decrease in the price of corn and soybeans. b. A 10% increase in the price of turkeys. c. Development and adoption of a new synthetic hormone that decreases turkey mortality and improves feed efficiency.
2.​Which of the following is a microeconomic question? a.​How many textbooks should be published by a...
2.​Which of the following is a microeconomic question? a.​How many textbooks should be published by a publisher? b.​How many high school graduates in a country go to college? c.​How much did the cost of living in a city increase last year? d.​What is the rate of unemployment? e.​What is the total population of a city? 3. The government offers subsidies for people to start their businesses. Because of that, more people choose to start a business instead of going to...
Explain how, if at all, each of the following events would affect equilibrium real GDP and...
Explain how, if at all, each of the following events would affect equilibrium real GDP and equilibrium price level. A reduction in the quantity of money in circulation A technological improvement in producing calculators and printers A hurricane of unprecedented strength has damaged oil rigs factories and ports all along the United States coast.
Fill in the following table describing each events affect on market supply, demand, price and quantity...
Fill in the following table describing each events affect on market supply, demand, price and quantity in the market for potatoes, a normal good, indicating an increase, decrease or no effect on each variable: (Note: The first one is done for you.) Question Supply Demand Price Quantity 1. Rainfall increases in the market for potatoes Increase No Effect Decrease Increase 2. Number of farmers decreases 3. Consumer’s income increases 4. Price of rice, which is not an alternative good for...
1. Which of the following would decrease the demand for labor? (i) a decrease in the...
1. Which of the following would decrease the demand for labor? (i) a decrease in the output price (ii) an increase in the output price (iii) a labor-saving technological advance Group of answer choices (i) only (i) and (iii) only (i) and (ii) only (ii) and (iii) only 2. If the wages of a CPA decrease, (i) her opportunity cost of leisure increases. (ii) her opportunity cost of leisure decreases. (iii) her hours of labor supply may increase. (iv) her...
2. Which of the following would decrease the demand for labor? (i) a decrease in the...
2. Which of the following would decrease the demand for labor? (i) a decrease in the output price (ii) an increase in the output price (iii) a labor-saving technological advance A. (i) only B. (i) and (iii) only C. (i) and (ii) only D. (ii) and (iii) only 2. If a worker responds to an increase in the opportunity cost of leisure by taking less leisure, then his labor supply curve is A. horizontal. B. vertical. C. backward sloping. D.upward...
In a large open? economy, how would each of the following events affect the equilibrium interest?...
In a large open? economy, how would each of the following events affect the equilibrium interest? rate? A natural disaster causes extensive damage to? homes, bridges, and? highways, leading to increased investment spending to repair the damaged infrastructure. A. The supply of loanable funds would? increase, decreasing the interest rate. B. The supply of loanable funds would? decrease, increasing the interest rate. C. The demand for loanable funds would? increase, increasing the interest rate. D. The demand for loanable funds...
How will the following two events affect the demand for money? In both cases, specify whether...
How will the following two events affect the demand for money? In both cases, specify whether there is a shift of the demand curve or a movement along the demand curve, its direction, and briefly an explanation why. a. The is an increase in inflation b. The economy picks up and GDP increases while unemployment decreases.
Which of the following events would shift the demand curve of loanable funds to the right?...
Which of the following events would shift the demand curve of loanable funds to the right? Select one: a. Local firms plan to increase their purchases of new equipment and construction of new factories. b. A change in the tax laws encourages people to consume less and save more. c. The government goes from running a budget deficit to running a budget surplus. d. A change in the tax laws encourages people to consume more and save less.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT