Question i.
News Analysis for Ch 04: When it Comes to Textbooks, both Students and Publishers do Their Homework 2. Shifting supply and demand in the market for new textbooks Consider the market for new copies of a popular economics textbook. The downward sloping blue line on the following graph shows the demand curve for new copies of the textbook one year after the release of the latest edition. Assume the textbook is revised on a four- year cycle. Expected resale value represents the amount of money students can expect to get by selling their textbooks in the used market at the end of their course. Use the graph Input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and the corresponding amount in the grey field will change accordingly. (Hint: Once you leave the page or select Check Answer, this calculator will reset to its initial values.)198 300 398 489 600 QUANTITY (Thousands of textbooks) 300,000 267,000 suppose that the publisher of this textbook sets the price of the textbook to $90, and the current resale value is $ Hice, the quantity 250,000 textbooks demanded is approximately per year. 283,000 The publisher holds the price of the textbook constant at $90 over the life of this latest edition. Two years after the his edition, the expected resale value of the textbook falls to $50. The quantity of new textbooks demanded is now approximately per year.Demand Shifters PRICE (Dollars pu Expected Resale $60 Value 30 (Dollars) 98 199 300 QUANTITY (Thousands d 233,000 570,000 300,000 267,000 Suppose that the publisher of this text e price of the textbook to $90, and the current resale value is $60. At this price, the quantity of new textbooks demanded is approximately per year. The publisher holds the price of the textbook constant at $90 over the life of this latest edition. Two years after the release of this edition, the expected resale value of the textbook falls to $50. The quantity of new textbooks demanded is now approximately per year.60 Expected Resale PRICE $60 Value 30 (Dollars) 98 199 300 499 600 QUANTITY (Thousands of textbooks) Suppose that the publisher of this textbook sets the price of the textbook to $90, and the current resale value is $60. At this price, the quantity of new textbooks demanded is approximately per year. The publisher holds the price of the textbook constant at $90 over the life of this latest edition. Two years after the release of this edition, the expected resale value of the textbook falls to $50. The quantity of new textbooks demanded is now approximately per year.vs Analysis for Ch 04: When it Comes to Textbooks, both Students and Publishers do Their Homework Graph Input Tool Price $130 ( Dollars per 150 textbook) Quantity Demanded 166.67 120 (Thousands of textbooks) PRICE (Dollars per textbook) Demand Shifters Expected Resale Value $60 (Dollars) 300 394 4 400 QUANTITY (Thousands of textbooks) Suppose that the publisher of this textbook sets the price of the textbook to $90, and the current resale value is $60. At this price, the quantity of new textbooks demanded is approximately per year, The publisher holds the price of the textbook constant at $90 over the life of this latest edition, Two years after the release of this edition, the expected resale value of the textbook falls to $50. The quantity of new textbooks demanded is now approximately per year
