The figure shows the market supply curve for second-hand textbooks, together with original and new demand curves, where the curve has shifted due to the arrival of new students. Based on the figure, which one of the following statements is correct?
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Question

The figure shows the market supply curve for second-hand textbooks, together with original and new demand curves, where the curve has shifted due to the arrival of new students. Based on the figure, which one of the following statements is correct?

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Answer

There has been an increase in supply.

Answer

All buyers who would have bought under the original demand curve would also be buying under the new demand curve.

Answer

The more elastic the supply curve, the smaller the price rise.

Answer

The more inelastic the supply curve, the larger the increase in the quantity traded.

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The figure shows the market supply curve for second-hand textbooks, together wit...

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