Question

The entire market demand curve for new college textbooks would shift inward (decrease) if there were: Group of answer choices

a. a market surplus of textbooks.
b. a new federal income tax deduction on up to $1000 for student buyers of textbooks.
c. higher prices for new textbooks.
d. shrinking real incomes among households with enrolled college students.

Answer 1

Higher prices for new textbooks.

Answer: Option C

Explanation:

The demand of a good is inversely related to the price of that particular good. If the price of a good increases, the demand of that good will fall. This is known as the law of demand in Economics.

In the above example, with the increase in the prices of the new textbooks, the demand of those textbooks will decrease in the market. As a result if this, the demand curve for the same will shift inwards.