You are an owner of a book store, and you meet with other neighborhood book store owners. Consider that books and library books are substitutes. In an attempt to increase sales, you collectively decide to lower prices by 10%. Which of the following are consequences of this price change? A. The supply of books will decrease. B. The quantity supplied of books will decrease. C. The supply of books will increase. D. The demand for books will increase. E. Demand for library books will decrease. F. The demand for books will not change.

Question

Business

Huynh

2 July, 15:50

You are an owner of a book store, and you meet with other neighborhood book store owners. Consider that books and library books are substitutes. In an attempt to increase sales, you collectively decide to lower prices by 10%. Which of the following are consequences of this price change? A. The supply of books will decrease. B. The quantity supplied of books will decrease. C. The supply of books will increase. D. The demand for books will increase. E. Demand for library books will decrease. F. The demand for books will not change.

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Answers (1)

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Mia Reeves · Answer 1

The following will be applied:

B. The quantity supplied of books will decrease.

A. The demand for books will not change.

F. Demand for library books will decrease.

Explanation:

With the diminishing in costs of books, the amount provided of books will diminish because of the appropriateness of the law of Supply.

The Quantity Demanded for books will increment because of appropriateness of the law of interest however there is no adjustment popular because of a diminishing in the cost of own merchandise. Notwithstanding, the interest for substitute merchandise will diminish as there is a positive connection between the interest at substitute products and costs of own commoditiy.