As the price of good Z falls,the quantity demanded of good Z rises,but the quantity supplied of good Z does not change.Based upon this information we can conclude that the demand curve for good Z is ________________ and the supply curve for good Z is ________________.
A) downward sloping; upward sloping
B) upward sloping; downward sloping
C) upward sloping; vertical
D) downward sloping; vertical
E) vertical; downward sloping

Question

Quizplus · Accepted Answer

The demand curve for good Z is downward sloping because as the price falls, the quantity demanded rises. The supply curve is vertical because the quantity supplied does not change with a change in price, indicating perfectly inelastic supply.

As the Price of Good Z Falls,the Quantity Demanded of Good