The determinants of demand and the demand for paperback books For each of the fo
ID: 1214100 • Letter: T
Question
The determinants of demand and the demand for paperback books
For each of the following, state the determinant of demand that is changed, and explain how the determinant affects the demand for books.
a. The opening of a huge new library in town
b. A news story that the price of paperbacks is about to increase due to worldwide paper shortages
c. The opening of a new luxury resort in town, which brings in many guests
d. A large increase in income from the increased tourism in town
e. A news story that reports book readers are more likely to develop hemorrhoids
Explanation / Answer
a. The opening of a huge new library in town
due to factors , other than price , opening of a huge new library means easy accessibility to books so this will increase demand for books. also in library , costumers can have a look of books and demand those books
b. A news story that the price of paperbacks is about to increase due to worldwide paper shortages
as paperbacks is substitute to books so increase in price of paperbacks will lead to decrease in demand of paperbacks and increase in price of books.
c. The opening of a new luxury resort in town, which brings in many guests
this may add to the number of consumers, therefore increase in demand
d. A large increase in income from the increased tourism in town
incresed income will lead to increase in demand of goods
e. A news story that reports book readers are more likely to develop hemorrhoids
this will lead to decrease in demand of books