The price of a new textbook increases from $75 to $90 while the price of used copies of the textbook increases from $50 to $65. Other things equal, we would expect to observe
A) the quantity demanded of the used textbook to increase while the quantity demanded of the new textbook to fall.
B) the quantity demanded of both to fall.
C) the demand for the new textbook to increase while the demand for the used textbook to decrease.
D) the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase.
D
You might also like to view...
Signals are believable when the cost of sending a
A) false signal is known to be low. B) false signal is known to be high. C) true or false signal is known to be low. D) true signal is known to be high.
Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it should be set below the market equilibrium wage. C. some workers will become unemployed as a result of the minimum wage. D. All of these are true.
Economists believe that people who sit through bad music concerts likely do so because:
A. they do not ignore the sunk cost involved. B. they don't accurately consider what else they could be doing with their time. C. they undervalue the opportunity cost of their time. D. All of these are true.
Using the income approach, an estimate of the value of capital worn out producing GDP is:
A. indirect business taxes. B. capital consumption allowance or depreciation. C. gross private domestic investment. D. capital erosion estimate.