I need help with answering this question can you please help me with it. Q. Acco

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I need help with answering this question can you please help me with it.

Q. According to the article, why might students be more sensitive to the potential resale value of a textbook than its purchase price?

1. Background information and a news article Aa Aa At first glance, the market for college textbooks appears to be stacked against you. Your professor assigns a book with a big price tag, you buy it, and the publisher pockets a tidy profit. End of story, right? Not quite A 2005 research paper by two economists suggests that students are fairly adept at gaming textbook publishers. Students work both sides of the used textbook market in an attempt to lower their textbook tab-hunting for used textbook bargains when classes begin and often reselling them at the end of the term. This New York Times article discusses student behavior in the market for college textbooks. As you read it, think about how the revision cycle of textbooks affects students' textbook buying decisions. How does the behavior described in the article compare to your own experience in the textbook market? Read the following article from the New York Times, and then answer the questions that follow. With Textbooks, Students Show How Smart They Are by David Leonhardt, The New York Times September 5, 2005 It is easy to hate textbook publishers in September. As college campuses reopen, professors order their students to spend $100 on Introduction to Psychology or $120 on Plant Virology. They cannot switch to another brand, as they can when their cell phone plan or favorite blue jeans brand becomes more expensive, or they will find themselves on the wrong Page 86 during a lecture. Source: SXC.hu Worst of all, the book might be worthless at the end of the semester. Whenever publishers come out with a new edition, they erase the resale value of all the used versions of the book. It seems like the publishers have all the power and the students have no means for fighting back. But that isn't how it ends up, thanks to some impressive consumer sophistication on the part of the students, according to a new study by two economists.

Explanation / Answer

According to the article the students are sensitive to the resale value of a book rather than its purchase price because the people will buy the book for a certain amount and they use it for a periuod of time. After their requirement that book will be of no use to them. SO they resale the book for certain amount which will be of a certain price. If the student will be able to atleast get half the purchase price during resale he will be happy because he was able to use the book and even get half the money he spent. Thus he is having some sort of profit. SO that is why the student are more sensitive to resale value rather than purchase value.

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