Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
At a price of $15 (the price at which the two demand curves intersect), the price elasticity of demand for the new drug is ________ the price elasticity of demand for the over-the-counter pain reliever.
A. greater than
B. the same as
C. the reciprocal of
D. less than
Answer: D
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A period of stagflation can be considered as part of the normal aftermath of a
A. decrease in aggregate demand. B. period of high unemployment. C. period of low unemployment. D. period of inward shifting aggregate demand.
Of the three levels of government in the United States,
a. only the federal government provides public goods b. only the federal government has the power to tax c. local governments are primarily responsible for primary and secondary education d. the federal government is primarily responsible for higher education e. state governments are primarily responsible for economic stability
If demand decreases and supply increases, which of the following is correct? Question 24 options:
A. The equilibrium price falls but the impact on the equilibrium quantity is ambiguous. B. The equilibrium price rises but the impact on the equilibrium quantity is ambiguous. C. The equilibrium quantity increases but the impact on the equilibrium price is ambiguous. D. The equilibrium quantity decreases but the impact on the equilibrium price is ambiguous. E. The equilibrium price falls and the equilibrium quantity decreases.
Most migrants move from developing to developed nations
Indicate whether the statement is true or false