If the Demand Curve for a Life-Saving Medicine Is Perfectly

question 51

Multiple Choice

If the demand curve for a life-saving medicine is perfectly inelastic, what result will a reduction in supply have on the equilibrium price and equilibrium quantity?

• A) The price will rise and the quantity will rise.
• B) The price will rise and the quantity will stay the same.
• C) The price will stay the same and the quantity will fall.
• D) The price will rise and the quantity will fall.

---

Definitions:

E-commerce Disputes

Conflicts or disagreements arising from the buying and selling of goods and services over the internet.

National Arbitration Forum

An organization that provided arbitration and mediation services for disputes, primarily involving consumer and commercial issues.

Alternative Dispute Resolution Act

Legislation that provides for the settlement of disputes through mechanisms other than litigation, such as arbitration or mediation.

Federal District Court

A general trial court of the United States federal court system that deals with both civil and criminal cases.