17 May 2022 4:11 pm
Skans » 17 May 2022, 4:04 pm » wrote: ↑ 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.
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?
Horizontal demand curve is where demand decreases the instant that you increase the price. The person in this case is not willing to spend any amount of money to acquire the good. Examples of this are jewelry, high end alcohol, and high end cars.
Your example is a bit flawed. A demand curve is formulated on the assumption of personal satisfaction aka utility. I can't have any utility if I die. In short, no way to graph something on the standard supply demand graph that has negative marginal utility.