Question : 2. Consider the market for buying and selling textbooks in
2. Consider the market for buying and selling textbooks in Economics classes. Suppose that the Economics faculty get together and decide they want more students to buy textbooks because they believe it will enhance learning outcomes. Assume the average price for Economics textbooks is currently $100. Using a simple sketch of demand, show how each of the following policies would be expected to impact the behavior of buyers in the market:
a. (1 point) The Economics faculty each decide to use old editions of textbooks, which are cheaper.
b. (1 point) The Economics faculty will each assign readings from required textbooks, and give a quiz over the reading at the beginning of each class.