A Vertical Demand Curve for a Particular Good Implies That

question 62

Multiple Choice

A vertical demand curve for a particular good implies that consumers are

• A) sensitive to changes in the price of that good.
• B) not sensitive to changes in the price of that good.
• C) irrational.
• D) not interested in that good.

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Definitions:

Probability

A measure quantifying the likelihood that a specific event will occur, typically expressed as a number between 0 and 1.

Uniform Density

A measure indicating that mass is evenly distributed throughout a substance or object, so each unit volume has identical mass.

Probability

Probability refers to the measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Poisson Approximation

A statistical technique used to estimate the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.