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.