Question

Consider the market in which publishers operate.Suppose the price of a fiction book is expected to fall next year.Explain how this event will change the quantity of fiction books supplied and the supply of fiction books today.

Answer 1

Supply will increase today.

Step-by-step explanation:

Supply will increase today because the producer's primary motive is to earn profit so when the price decreases then the profit also decreases. Therefore, when the future expected price is going to fall then the producer will try to earn more profit by selling at a higher price so the current supply will increase for the fiction book.