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?

Question

Quizplus · Accepted Answer

The equilibrium price change is ambiguous because there are multiple factors affecting both supply and demand. Increased college attendance raises demand, potentially increasing price. Cheaper paper and lower royalties reduce production costs, increasing supply and potentially lowering price. Fewer used textbooks increase demand for new ones, potentially raising price. The net effect depends on the relative magnitudes of these changes.

What Will Happen to the Equilibrium Price of New Textbooks