​Figure 52

question 42

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following is a possible difference between health care and other products?​

• A)​The demand curve for health care may be steeper than the demand curve for other products.
• B)​The demand curve for health care is a horizontal line, whereas the demand curve for other products is downward sloping.
• C)The supply curve for health care is fixed, whereas the supply curve of other products change with a change in its determinants.
• D)​The demand for health care is positively related to price, whereas the demand for other products is inversely related to price.
• E)​The supply of health care is inversely related to price whereas the supply of other products are positively related to price.

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Definitions:

Business Judgment Rule

A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.

Derivative Action

A lawsuit brought by a corporation’s shareholder on behalf of the corporation against a third party, often an insider of the corporation.

Uncertificated

Referring to securities or stocks that are not represented by a physical certificate, existing only as electronic records.

Physical

Physical pertains to anything related to the body or the material world, as opposed to mental or virtual aspects.