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New Chapter is an award winning traditional bookshop located in Tinahily, Co Wicklow - Junior Cycle Business Studies - Question 16 - 2019
Question 16
New Chapter is an award winning traditional bookshop located in Tinahily, Co Wicklow. The demand and supply curves for one of its books 'The Great Irish Weather Book... show full transcript
Worked Solution & Example Answer:New Chapter is an award winning traditional bookshop located in Tinahily, Co Wicklow - Junior Cycle Business Studies - Question 16 - 2019
Step 1
Indicate the quantity supplied of 'The Great Irish Weather Book' at €20.
Answer
At a price of €20, the quantity supplied of 'The Great Irish Weather Book' is 80 units. This can be determined by locating the price on the vertical axis and finding the corresponding quantity on the supply curve.
Step 2
Indicate the quantity demanded of 'The Great Irish Weather Book' at €8.
Answer
At a price of €8, the quantity demanded of 'The Great Irish Weather Book' is 100 units. This is found by locating the price of €8 on the vertical axis and observing the corresponding quantity on the demand curve.
Step 3
Step 4
What impact would the following have on the demand for books in New Chapter?
Answer
- A reduction in the price of books: Increased demand (✓)
- An increase in taxes (VAT): Decreased demand (✓)
- Roll out of broadband to all areas in Wicklow: Increased demand (✓)
- An Eason's store opening in the town: Decreased demand (✓)