The Internet has created a new category in the book selling market, namely, the "barely used" book. How does the availability of barely used books affect the market for new books?
A) The demand curve for new books shifts to the right.
B) The supply curve for new books shifts to the left.
C) The demand curve for new books shifts to the left.
D) The supply curve for new books shifts to the right.
C
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What would be the best description of what we assume about money prices in the short run?
A) Money prices of goods and services vary. B) Money prices of goods and services not related to each other. C) Money prices of goods are fixed. D) Money prices of services are fixed. E) Money prices of goods and services are only temporarily fixed.
Research on productivity shocks has shown that
A) productivity shocks have only nominal effects. B) there have been no identifiable productivity shocks in the U.S. economy since World War II. C) small productivity shocks can explain large business cycle fluctuations. D) large productivity shocks produce only small deviations in aggregate output.
Compared to the short run, the long-run market supply curve is
a. less elastic b. equally elastic c. more elastic d. always negatively sloped e. None of the answers is correct.
A monopolist must produce a good for which there are no close substitutes.
Indicate whether the statement is true or false.