17 May 2022 4:04 pm
Can you not say the same thing about a horizontal demand curve? That demand would be the same regardless of price? Again, as you go to the limits of each curve, you delve into the realm of philosophy and away from economics.impartialobserver » 17 May 2022, 3:48 pm » wrote: ↑ When it came to the graduate level, the students were glorified processors. Absorb information and then regurgitate it at precise times. A week later, ask them what they wrote down and you get the blank stare reminiscent of asking someone how they got somewhere after a long night of drinking and drugs.
Community college.. they acted indignant when I wanted them to give me real life examples of stuff. They wanted cookie cutter stuff that they could autopilot through.
A vertical demand curve is one where demand is the same regardless of price. In short, folks will pay any price to acquire the product. This occurs when there is no alternative. Theoretically, one could say this about water, air, or certain medicines. However, the point is that the students in my second year microeconomics were clueless about this. As a result, when given the chance to teach first year microeconomics.. I made the course interactive and not just memorizing. For example, the class would bring 5 random goods per person and then we would have them spend $100 in fake money. We would do this once every week. Each time, letting a different person go first therefore changing what was available.
Let's play with the vertical demand curve for a moment. You are in a room where I control the air. You are the Fed Chairman and truly have an unlimited amount of money at your disposal. I would love to sell you as much air as you need, and you say you can pay my price. You offer me a trillion dollars - I say not enough. After making several more offers, you finally ask me "how much for the air"? I say "I've got your son in room 102" - your air to survive will cost you his life. Are you going to take the deal? How would you graph this?