Of the Following, Which Is the Best Example of Good

question 187

Multiple Choice

Of the following, which is the best example of good with a perfectly inelastic demand?

• A)the demand for tickets in New York City when the Mets or Yankees are in the World Series
• B)the demand for gasoline
• C)a diabetic's demand for insulin
• D)the demand for a college education by a student who has a full scholarship to an Ivy League school

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Definitions:

Federal Reserve Bank of New York

One of the 12 Federal Reserve Banks in the United States, playing a key role in monetary policy, financial supervision, and economic research.

Board of Governors

The executive leadership of a central banking system, such as the Federal Reserve in the United States, responsible for setting monetary policies and overseeing affiliate banks.

Reserve Requirement Ratio

The fraction of deposits that banks are required to keep on hand, either in cash or as deposits at a central bank, as a measure to ensure bank liquidity.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory authorities.