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 28 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
Wow, this really help

marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Origin of the plant life cycle. Origin of the plant life cycle.
Life on Earth Life on Earth
Faculty of Medicine Faculty of Medicine
Life cycle of Coccidioides immitis. Life cycle of Coccidioides immitis.
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus). Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus).
Video: Types of antimicrobial substances (interferons & complement protein)

For a complete list of videos, visit our video library