A vertical demand curve for a particular good implies that consumers are
A) sensitive to changes in the price of that good.
B) not sensitive to changes in the price of that good.
C) irrational.
D) not interested in that good.
B
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A bank's actual reserves can be calculated by: a. multiplying its demand deposits by the required reserve ratio. b. multiplying its excess reserves by the required reserve ratio. c. subtracting its required reserves from its excess reserves
d. adding its required reserves and its excess reserves.
Using Figure 3 above, suppose that the economy was at Y2. This level of GDP would be considered:
A. inflationary. B. a long run level of output. C. recessionary. D. unsustainable over time.
In general, a firm will be unlikely to invest as long as the
A. firm has to borrow any money to make the investment. B. profits realized from the investment are insufficient to cover the interest payments. C. interest rate is greater than the inflation rate. D. firm cannot sell bonds directly to the public and instead must borrow from a bank.
Senior citizen and student discounts on tickets at movies theaters are examples of
a. First-degree price discrimination. b. Second-degree price discrimination. c. Third-degree price discrimination. d. A two-part tariff.