What Does a Vertical Demand Curve Suggest

question 59

Multiple Choice

What does a vertical demand curve suggest?

• A) That producers are unable to adjust the quantity they produce.
• B) That the price is not a determinant of the quantity demanded.
• C) That consumers will not buy the product unless it is free.
• D) That a change in supply has no effect on the price.

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Definitions:

Prepaid Insurance

An asset account that represents insurance payments made in advance, which are expensed as the insurance coverage period lapses.

Transaction Chronologically

Recording of transactions in the order of their occurrence over time.

Accounts

Financial records that track all transactions related to a specific item, such as revenues, expenses, assets, liabilities, or equity.

Normal Balance

The side (debit or credit) of an account that is usual or expected to increase the balance of that account.