Why Would One Expect the AD Curve to Be Vertical

question 180

Multiple Choice

Why would one expect the AD curve to be vertical?

• A)If the price level rises, relative prices haven't changed so people would not change their choices.
• B)If the price level rises, changes in choices by suppliers are offset by changes in demanders.
• C)People do not make choices based on relative prices, but instead based on absolute prices.
• D)Substitution is not one of the reasons why the AD curve has its slope.

Understand the role of visibility and trialability in enhancing the diffusion of innovations.

Grasp the impact of organizational culture and worker demographics on the diffusion of innovation.

Understand what diffusion is and the factors affecting its rate in organizations.

Identify the only firm in Richard Walton's study where significant diffusion occurred.

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Definitions:

Anus

The opening at the end of the digestive tract through which waste material is expelled from the body.

Stomach Ulcer

A sore that develops on the lining of the stomach, often due to infection with H. pylori or prolonged use of nonsteroidal anti-inflammatory drugs.

Lining

Material that covers the inner surface of something, used for protection, insulation, or aesthetic purposes.

Stomach

An organ in the digestive system that secretes acid and enzymes to digest food.