Question: Sketch a supply curve graph illustrating a student's willingness to sell his textbooks from all his classes right now. Assume that the student will receive offers of this sort: "I'll give you [a fixed number of dollars] apiece for all the books you want to sell." Carefully label the vertical and horizontal axes. Suppose that, at an original offer of $30 per book, the student will be willing to sell three books, because he knows he can replace these three for less than $30 each at a local bookstore. Mark this point on your first graph. Assume further that at $40 he would be willing to sell four books, at $50 he would supply five books, and so on. Now, on separate graphs labeled (a), (b), and (c), show this line and his offer at $30 and the precise new point or an approximate new curve that illustrates each of the following changes in conditions. Consider them separately, returning to the condition of no Internet resources in part (c).
a. He is offered $70 per book instead of $30.
b. He discovers that the textbook materials for many of his classes are available free on the Internet.
c. The local bookstore raises its prices substantially.