Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to expenditures by consumers in this market if a $2 co-pay is established compared to a free-market equilibrium?

A. Expenditures rise by $90
B. Expenditures remain at $150
C. Expenditures fall by $120
D. Expenditures fall by $30


Answer: D

Economics

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Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 could be caused by a(n):

A. decrease in the product's expected future price. B. increase in the price of a complement. C. increase in the price of a close substitute. D. increase in quantity supplied.

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In case of endogenous sample selection, OLS is unbiased but consistent.

Answer the following statement true (T) or false (F)

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The following simultaneous equations describe the demand and supply for a particular good in a competitive market.

Qi= 1Pi+ 1zi1 + ui1 Qi= 2Pi+ 2zi2 + ui2 Which of the following are the endogenous variables in this model? A. Pi,zi1, and zi2 B. Pi and Qi C. zi1, and zi2 D. ui1 and ui2

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Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles

A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.

Economics