For which of the following products is the consumer's demand curve most likely to be vertical?
a. lobster, for a seafood lover
b. cars, for high school students
c. insulin, for a diabetic
d. compact disks, for a music lover
e. beef, for a food lover
C
You might also like to view...
Refer to Figure 19-4. The equilibrium exchange rate is originally at A, $3/pound. Suppose the British government pegs its currency at $4/pound
Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2. If the government abandons the peg, the equilibrium exchange rate would be A) $4/pound. B) $3/pound. C) $2/pound. D) less than $2/pound.
Many economists argue that, in the long run, the economy self-corrects and achieves full employment. This argument is known as the:
a. natural rate hypothesis. b. incomes policy approach. c. political business cycle theory. d. Keynesian cross model.