The Demand Curve for a Good Is Very Unlikely to Be

question 182

Multiple Choice

The demand curve for a good is very unlikely to be perfectly vertical because

• A) scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive.
• B) as the price of a good rises to high enough levels, the incentive for other suppliers to invent new substitutes for the good increases.
• C) consumers generally do not care about the price of the goods they consume.
• D) both a and b are true.

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Definitions:

Upward Mobility

The possibility or ability of individuals to rise in socio-economic status, often through education, training, or opportunities in their careers.

Psychological Contracts

Unwritten agreements or expectations between an employee and employer regarding the mutual obligations in their relationship.

Negative Emotional Reactions

Responses that are characterized by negative feelings such as sadness, anger, or fear, typically as a consequence of specific events or situations.

Loss Of Trust

The breakdown or erosion of confidence and belief in an individual, organization, or system.