Question 10) 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

Why is the answer D? I chose B because under the law of demand an increase in price would decrease quantity demanded.