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.
A likely reason for the difference in the slopes of the demand curves is that:
A. one drug is heavily regulated by the Food and Drug Administration and the other is not.
B. one market is in equilibrium and the other is not.
C. one drug is new on the market, but the other has been available for a long time.
D. the over-the-counter pain reliever has many substitutes, but the new drug does not.
Answer: D
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Indicate whether the statement is true or false
Which of these is a flow variable?
a. Money b. Income c. Jewelry d. Bank deposit e. Foreign currency reserve
Paul Samuelson, a famous economist, said that
a. "the bond market has predicted zero out of the past nine recessions.". b. "the stock market has predicted zero out of the past nine recessions.". c. "the bond market has predicted nine out of the past five recessions.". d. "the stock market has predicted nine out of the past five recessions.".
Since 1973 the incidence of poverty has generally increased for
A. children. B. the elderly. C. married couples. D. All of the choices are true.