Chapter 3, Problem 10P

To determine

Consider the market for paperbound economic textbooks. Explain whether the following events would cause an increase or a decrease in supply or an increase or a decrease in the quantity supplied.

1. The market price of paper increases
2. The market price of economic textbooks increases
3. The number of publishers of economics textbooks increases
4. Publishers expect that the market price of economic textbooks will increase next month

Content information:

Supply refers to the quantities of goods sold in the market at a given set of prices. Supply is positively related to price. As price increases quantity supplied will increase and vice versa. A change in supply leads to a shift in the supply curve.

Quantity supplied refers to the amount of good sold in the market at a fixed price at a given point in time. Change in quantity supplied leads to a movement along the given supply curve.