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

Question

Quizplus · Accepted Answer

The effects on the equilibrium price of new textbooks are mixed and depend on the relative magnitudes of the shifts in supply and demand. More students attending university increases demand (tending to increase price), cheaper paper and lower royalties increase supply (tending to decrease price), and fewer used textbooks being sold can also increase demand for new textbooks (tending to increase price). The overall effect on price is ambiguous without knowing the relative sizes of these changes.

What Will Happen to the Equilibrium Price of New Textbooks