If textbooks became more expensive but no other prices changedand your income re

Question

If textbooks became more expensive but no other prices changedand your income remained the same do you think you would spend moreless or the same as you spemnd now on textbooks? What does your answer tell you about your price elasticty ofdemand for textbooks ? If textbooks became more expensive but no other prices changedand your income remained the same do you think you would spend moreless or the same as you spemnd now on textbooks? What does your answer tell you about your price elasticty ofdemand for textbooks ?

Explanation / Answer

Textbooks are something that you need to buy in order to do well inyour classes. Without owning the textbooks, you will likelyperform poorly. As such, they are not really something thatyou decide whether to buy. They are simply something that youMUST buy. For this reason, you would spend more money on textbooks if theprice of textbooks rose. You need to buy the same number ofbooks, but each book is now more expensive. You spendmore. This means that textbooks are a relatively inelasticgood. Changes in price produce SMALL changes in the quantitysold.

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