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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Definitions:

Value Chain Management

The process of managing activities and processes to create value for customers, from product design to final sales and after-sales service.

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Quality Chain

A sequence of activities or processes that aim to ensure and enhance the quality of products or services at every stage.

External Customers

Individuals or entities that purchase a company's products or services but are not part of the organization itself.