The Price of a New Textbook Increases from $120 to $160

question 163

Multiple Choice

The price of a new textbook increases from $120 to $160, while the price of used copies of the textbook increased from $80 to $100. Other things being equal, we would expect

• A)the quantity demanded of the used textbook to increase and the quantity demanded of the new textbook to decrease.
• B)the quantity demanded of both to fall.
• C)the demand for the new textbook to increase and the demand for the used textbook to decrease.
• D)the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase.

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