In Cases Where the Supply Curve Is Vertical, Any Change

question 134

True/False

In cases where the supply curve is vertical, any change in demand will cause only a change in price but no change in quantity.

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Definitions:

Clever Hans Effect

The phenomenon where a creature (notably a horse named Clever Hans) appears to be able to perform tasks requiring intelligence, but is actually responding to cues from humans.

Negative Correlation

An association between two elements in which the rise of one leads to the fall of the other.

Causation

The action of causing something, implying a relationship where one event is the result of the occurrence of another event.

Cause-and-Effect Conclusion

The determination that one event (the cause) directly leads to another event (the effect).