Construct a market for college textbooks sold by several campus bookstores at a major university. Assume...

 

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Construct a market for college textbooks sold by several campus bookstores at a major university. Assume there is some elasticity of demand and supply. In the same market. indicate the change to equilibrium price and quantity if the university-in its desire to help profit margins for the campus bookstores-establishes a price support for college textbooks that is above the equilibrium price by agreeing to purchase all unsold textbooks at the price support price. 3B. Indicate with q2 the quantity of books purchased by students. 3C. Indicate with q3 the quantity of books sold by the campus bookstore. Construct a market for college textbooks sold by several campus bookstores at a major university. Assume there is some elasticity of demand and supply. In the same market. indicate the change to equilibrium price and quantity if the university-in its desire to help profit margins for the campus bookstores-establishes a price support for college textbooks that is above the equilibrium price by agreeing to purchase all unsold textbooks at the price support price. 3B. Indicate with q2 the quantity of books purchased by students. 3C. Indicate with q3 the quantity of books sold by the campus bookstore.

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