Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter

The basic reason that supply curves slope upward is that

a. demand curves slope downward b. production is characterized by increasing costs c. profits decline as product prices rise d. greater output can only result from improved technology e. price and quantity supplied are inversely related

A perfectly inelastic demand curve is: a. parallel to the horizontal axis

b. parallel to the vertical axis. c. downward sloping with a slope of 45 degrees. d. U-shaped with the minimum value equal to zero.