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 demand curve for new books shifts to the left.
C)The supply curve for new books shifts to the right.
D)The supply curve for new books shifts to the left.

Question

Quizplus · Accepted Answer

The availability of barely used books is likely to reduce the demand for new books, as consumers can choose to purchase the same book at a lower price in the secondary market. This would lead to a leftward shift in the demand curve for new books, resulting in a lower equilibrium quantity and price for new books.

The Internet Has Created a New Category in the Book