Question

Consider the market for economics 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. a. The market price of editorial services increases. This will cause​ a(n) A. increase in supply. B. increase in quantity supplied. C. decrease in supply.

Answer 1

Answer:

a. The market price of editorial services increases. This will cause​ a(n)

C. decrease in supply.

Explanation:

The event that triggers the market price of editorial services to increase will also increase the quantity of editorial services offered, and increase the cost of economics textbooks.  As a result, it decreases the quantity supplied.  The producers or publishers of economics textbook may not be able to pass the increased cost to consumers.  They may not even have the resources to publish more books with an increased cost of editorial services.  It is only the editors who offer editorial services that will benefit from the market price increase, but only in the short-run.