Multiple Choice
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.
E) fall and the equilibrium quantity to stay the same.
Correct Answer:
Verified
Correct Answer:
Verified
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