Newspaper recycling has been highly successful-perhaps too successful, given that many households gather and return their newspapers to recycling centers. The amount of newspapers recycled has dramatically increased, along with the number of recycling plants. Yet newspapers prefer regular newsprint over recycled newsprint, so the demand for recycled newsprint has remained essentially unchanged. The result of this for the recycled newsprint market is
A) a decrease in the supply and a higher price for recycled newsprint.
B) an increase in the supply and a lower price for recycled newsprint.
C) an increase in the supply and a higher price for recycled newsprint.
D) a decrease in the supply and an increase in the demand for recycled newsprint.

Question

Newspaper recycling has been highly successful-perhaps too successful, given that many households gather and return their newspapers to recycling centers.  The amount of newspapers recycled has dramatically increased, along with the number of recycling plants.  Yet newspapers prefer regular newsprint over recycled newsprint, so the demand for recycled newsprint has remained essentially unchanged. The result of this for the recycled newsprint market is
A) a decrease in the supply and a higher price for recycled newsprint.
B) an increase in the supply and a lower price for recycled newsprint.
C) an increase in the supply and a higher price for recycled newsprint.
D) a decrease in the supply and an increase in the demand for recycled newsprint.

Quizplus · Accepted Answer

The increase in newspaper recycling has led to an increase in the supply of recycled newsprint. However, since the demand for recycled newsprint has remained unchanged, the increased supply results in a lower price for recycled newsprint.

Newspaper Recycling Has Been Highly Successful-Perhaps Too Successful, Given That