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.
Answer: D
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Federal and state governments in the United States pay for ________ of health care spending
A) less than 10 percent B) approximately 34 percent C) just over half D) more than 80 percent
Comment on the following statement: "Isoquants must be downward sloping."
What will be an ideal response?
In the basic closed-economy ISLM model, the LM curve can be described by an equation where
A) output is a function of consumption. B) money is a function of interest rates. C) output is a function of money. D) interest rate is a function of output.
If a dollar buys more rice in the China. than in the U.S., then
a. the real exchange rate is greater than 1; a profit might be made by buying rice in the U.S. and selling it in China. b. the real exchange rate is greater than 1; a profit might be made by buying rice in China. and selling it in the U.S. c. the real exchange rate is less than 1; a profit might be made by buying rice in the U.S. and selling it in China. d. the real exchange rate is less than 1; a profit might be made by buying rice in China and selling it in the U.S.