If the demand curve for a good is a vertical line at Q = 1, then a decrease in the price of that good will:

A. not change the quantity demanded.
B. lead the quantity demanded to fall to zero.
C. decrease the quantity demanded.
D. increase the quantity demanded.


Answer: A

Economics

You might also like to view...

The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?

What will be an ideal response?

Economics

Which of the following is NOT present in a perfectly competitive market?

A) profit maximizing firms B) an economic profit in the long run C) price taking behavior D) identical products

Economics

All else equal, a rise in the debt-to-GDP ratio implies

A) a greater ratio of interest payments to GDP. B) a greater difference between the official and correct measures of the deficit as a fraction of GDP. C) a greater surplus is needed to prevent further rises in the debt-to-GDP ratio. D) all of the above E) none of the above

Economics

The diagnosis-related-group (DRG) system adopted by Medicare since 1983 has had the following effects, except:

A. Hospitals now receive a fixed payment for treating each patient B. The average length of a hospital stay has increased C. More patients are treated on an outpatient basis D. Hospitals now have an incentive to restrict the amount of resources used for patients

Economics