The demand curve for a good is very unlikely to be perfectly vertical because
a. scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive.
b. as the price of a good rises to high enough levels, the incentive for other suppliers to invent new substitutes for the good increases.
c. consumers generally do not care about the price of the goods they consume.
d. both a and b are true.
D
You might also like to view...
A bank has checking deposits of $400, saving deposits of $900, time deposits of $900, loans of $950, government securities of $900, outstanding credit card balances of $400, currency in its vault of $40, and deposits in its reserve account at the Fed
of $40. a. What is the amount of this bank's deposits that are in M1? b. What is the amount of this bank's deposits that are in M2? c. What is the amount of this bank's reserves?
The short-term unemployment arising from the process of matching workers with jobs is called
A) frictional unemployment. B) cyclical unemployment. C) structural unemployment. D) seasonal unemployment. E) unnatural unemployment.
Investors must rely on stockbrokers to give detailed, day-to-day reports on stocks and bonds.
Answer the following statement true (T) or false (F)
Supply curves generally slope upward because of all of the following reasons except one. Which is the exception?
a. Producers are willing to offer more of a good at higher prices. b. A higher price attracts resources from less-valued uses. c. Producers must be compensated for the rising opportunity cost of additional output. d. Producers have a greater incentive to sell more as the price increases. e. The price of a good usually must fall to induce an increase in quantity supplied.