Problem
Recall that when demand is perfectly inelastic, ?Q, P = 0.
a) Sketch a graph of a perfectly inelastic demand curve.
b) Suppose the supply of 1961 Roger Maris baseball cards is perfectly inelastic. Suppose, too, that renewed interest in Maris's career caused by Mark McGwire and Sammy Sosa's quest to break his home run record in 1998 caused the demand for 1961 Maris cards to go up. What will happen to the equilibrium price? What will happen to the equilibrium quantity of Maris baseball cards bought and sold?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.