Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly introduced drugs to everyone covered by the government plan.
b. generic competition in the U.S. has not done much to lower drug prices or spending.
c. price controls in the U.S. would lower drug prices without affecting the overall availability of branded drugs or lowering incentives for future drug development.
d. pharmaceutical price differences across countries are roughly in line with differences in per capita GDP, supporting the predictions of Ramsey pricing practices.
d. pharmaceutical price differences across countries are roughly in line with differences in per capita GDP, supporting the predictions of Ramsey pricing practices.
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An import quota for sugar results in an increase in
A) the domestic market price of sugar. B) the domestic demand for sugar. C) the domestic market supply of sugar. D) sugar imports.
Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5 . If the consumer's budget is $100, then the absolute value of the slope of the budget line is:
a. 100. b. 20. c. 1/4. d. 4.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the price of cable TV decreases, then consumer surplus (in the cable TV market):
A. increases. B. decreases. C. drops to zero. D. becomes negative.
A perfectly inelastic demand would imply what kind of demand curve?
A) horizontal B) vertical C) upward sloping D) downward sloping