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 54 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

cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

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.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

A theoretical photosynthetic response curve. A theoretical photosynthetic response curve.
Life of a Medical School Student Life of a Medical School Student
Osteoporosis. (a) A section through normal spongy bone. (b) A section through a bone with osteoporos Osteoporosis. (a) A section through normal spongy bone. (b) A section through a bone with osteoporos
An Inverted U Curve An Inverted U Curve
Ernesto Neto, TorusMacroCopula, one of four sculptures in Madness is Part of Life. Ernesto Neto, TorusMacroCopula, one of four sculptures in Madness is Part of Life.
Macromolecules and the building blocks of life Macromolecules and the building blocks of life
Video: baroreceptors

For a complete list of videos, visit our video library