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In the book market, the supply of books will decrease if any of the following occurs except
- a)a decrease in the number of book publishers
- b)a decrease in the price of the book
- c)an increase in the future expected price of the book
- d)an increase in the price of paper used
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
In the book market, the supply of books will decrease if any of the fo...
Factors affecting the supply of books
The supply of books in the market is determined by several factors. Let us discuss each of these factors in detail.
1. Number of book publishers
Book publishers are the primary source of books in the market. The more the number of publishers, the higher the supply of books. The publishers are responsible for producing and distributing books to the market. Therefore, a decrease in the number of book publishers will result in a decrease in the supply of books.
2. Price of the book
The price of the book is an important factor that affects the supply of books. If the price of the book increases, the supply of books will increase because publishers will be motivated to produce more books to take advantage of the higher price. On the other hand, if the price of the book decreases, the supply of books will decrease because publishers will be less willing to produce books at a lower price.
3. Future expected price of the book
The future expected price of the book also affects the supply of books. If publishers expect the price of the book to increase in the future, they will produce more books to take advantage of the higher price. On the other hand, if publishers expect the price of the book to decrease in the future, they will produce fewer books to avoid losses.
4. Price of paper used
The price of paper used in the production of books is another factor that affects the supply of books. If the price of paper increases, the supply of books will decrease because publishers will have to spend more on production costs. This will result in a decrease in the profit margin for publishers, and they will be less willing to produce books at a lower profit margin.
Answer
The correct answer is b) a decrease in the price of the book. All the other options will affect the supply of books in the market, but a decrease in the price of the book will not affect the supply of books. If the price of the book decreases, publishers may produce fewer books to avoid losses, but it will not affect the overall supply of books in the market.
The supply of books in the market is determined by several factors. Let us discuss each of these factors in detail.
1. Number of book publishers
Book publishers are the primary source of books in the market. The more the number of publishers, the higher the supply of books. The publishers are responsible for producing and distributing books to the market. Therefore, a decrease in the number of book publishers will result in a decrease in the supply of books.
2. Price of the book
The price of the book is an important factor that affects the supply of books. If the price of the book increases, the supply of books will increase because publishers will be motivated to produce more books to take advantage of the higher price. On the other hand, if the price of the book decreases, the supply of books will decrease because publishers will be less willing to produce books at a lower price.
3. Future expected price of the book
The future expected price of the book also affects the supply of books. If publishers expect the price of the book to increase in the future, they will produce more books to take advantage of the higher price. On the other hand, if publishers expect the price of the book to decrease in the future, they will produce fewer books to avoid losses.
4. Price of paper used
The price of paper used in the production of books is another factor that affects the supply of books. If the price of paper increases, the supply of books will decrease because publishers will have to spend more on production costs. This will result in a decrease in the profit margin for publishers, and they will be less willing to produce books at a lower profit margin.
Answer
The correct answer is b) a decrease in the price of the book. All the other options will affect the supply of books in the market, but a decrease in the price of the book will not affect the supply of books. If the price of the book decreases, publishers may produce fewer books to avoid losses, but it will not affect the overall supply of books in the market.
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Community Answer
In the book market, the supply of books will decrease if any of the fo...
There is a direct relationship between price of the book and quantity supplied,
Price increases, Quantity supplied increases
Price decreases, Quantity supplied decreases
Suppliers prefer to sell goods at higher price ..!
Hope it's clear now.
Price increases, Quantity supplied increases
Price decreases, Quantity supplied decreases
Suppliers prefer to sell goods at higher price ..!
Hope it's clear now.
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In the book market, the supply of books will decrease if any of the following occurs excepta)a decrease in the number of book publishersb)a decrease in the price of the bookc)an increase in the future expected price of the bookd)an increase in the price of paper usedCorrect answer is option 'B'. Can you explain this answer?
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In the book market, the supply of books will decrease if any of the following occurs excepta)a decrease in the number of book publishersb)a decrease in the price of the bookc)an increase in the future expected price of the bookd)an increase in the price of paper usedCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for In the book market, the supply of books will decrease if any of the following occurs excepta)a decrease in the number of book publishersb)a decrease in the price of the bookc)an increase in the future expected price of the bookd)an increase in the price of paper usedCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of In the book market, the supply of books will decrease if any of the following occurs excepta)a decrease in the number of book publishersb)a decrease in the price of the bookc)an increase in the future expected price of the bookd)an increase in the price of paper usedCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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