Figure 4-2

-If the government has stated that it will buy any amount of good X offered at $30, which demand curve in Figure 4-2 is appropriate?
A)1
B)2
C)3

Question

Figure 4-2
 
-If the government has stated that it will buy any amount of good X offered at $30, which demand curve in Figure 4-2 is appropriate?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

The demand curve appropriate for the government's statement is curve 1, as it shows that at a price of $30, consumers are willing and able to purchase any quantity of good X. Therefore, the government's statement implies that it will buy all of the good X that consumers are willing to purchase at that price.

Figure 4-2 -If the Government Has Stated That It Will Buy Any