Question

What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold?

Answer 1

Explanation:

If textbook authors accept lower royalties the cost of production for textbooks will decrease, so the supply will increase. If fewer old textbooks are sold, the demand for new textbooks will increase. ... If both demand and supply increase by the same proportion, the equilibrium price will remain the same.