Author Question: Assume that the demand curve for a certain good is a vertical line. This vertical demand curve ... (Read 94 times)

Starlight · **on:** Jun 30, 2018

Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
a. consumers are unwilling to pay more than a certain price for the good.
b. the good is a complement to another good.
c. consumers are unwilling to pay less than a certain price for the good.
d. there are many substitutes for this good.
e. people will not change the quantity demanded of the good when its price is changed.

Question 2

When people alter their preferences when a choice is presented in a certain way, it is called:
a. anchoring
b. framing
c. the endowment effect
d. compartmentalizing