This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the demand curve for a life-saving medicine is perfectly inelastic, a reduction in supply will ... (Read 55 times)

DyllonKazuo

  • Hero Member
  • *****
  • Posts: 565
on: Jun 30, 2018
If the demand curve for a life-saving medicine is perfectly inelastic, a reduction in supply will cause the equilibrium price to:
 a. rise and the equilibrium quantity to fall.
 b. rise and the equilibrium quantity to stay the same.
  c. rise and the equilibrium quantity to rise.
 d. stay the same and the equilibrium quantity to fall.

Question 2

Explain Gresham's Law.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

asdfghjkl;

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

When there are two forms of money available, people prefer to spend the form of money that is less valuable. Thereby giving rise to the phrase Cheap money drives out dear money. For instance if there is paper money and silver coins, it is more likely that individuals will hoard the silver coins hoping that the value of them will increase. In this instance the paper money is the cheap money.


DyllonKazuo

  • Member
  • Posts: 565
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

The life cycle of Plagiorhynchus cylindraceus, an intestinal parasite of birds. The life cycle of Plagiorhynchus cylindraceus, an intestinal parasite of birds.
Chemistry of life: four key concepts Chemistry of life: four key concepts
Ebbinghaus’s forgetting curve Ebbinghaus’s forgetting curve
In Second Life, multiplayer online game, two avatars engage in virtual courtship. In Second Life, multiplayer online game, two avatars engage in virtual courtship.
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Saving Rates by Income Quintile, 2003 Saving Rates by Income Quintile, 2003
Video: Structures that affect circulation - kidneys, blood volume and venous tone

For a complete list of videos, visit our video library