If the supply curve is a vertical line, it means that:
A. regardless of price, the quantity supplied is a constant amount.
B. regardless of quantity, the price is a constant amount.
C. the good is inferior.
D. the good has many substitutes.
Answer: A
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From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease tax rates. B) decrease government spending. C) decrease the required reserve ratio. D) decrease oil prices.
If the price of orange juice rises, the demand for grapefruit juice will
a. increase because the two goods are substitutes b. increase because it is a complement c. decrease because the two goods are substitutes d. decrease because the two goods are complements e. not change unless the price of grapefruit juice also changes