Multiple Choice
Why would one expect the AD curve to be vertical?
A) If the price level rises, relative prices haven't changed so people would not change their choices.
B) If the price level rises, changes in choices by suppliers are offset by changes in demanders.
C) People do not make choices based on relative prices, but instead based on absolute prices.
D) Substitution is not one of the reasons why the AD curve has its slope.
Correct Answer:
Verified
Correct Answer:
Verified
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