Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. 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. 
The manufacturer of the new drug would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in
B. decrease
C. experience an uncertain change in
D. increase
Answer: D
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Refer to the scenario above. Which of the following will happen in this case?
A) Neither of them will make any money. B) Only Elly will make money. C) Elly will trust, but her employee will defect. D) Elly will trust, and her employee will cooperate.
The market demand curve is derived by:
a. studying an individual's demand for a product over a year. b. comparing the monthly consumption of a group of people. c. surveying a set of consumers and ascertaining their preferences. d. adding up the quantities that consumers in a market are willing and able to purchase at each price. e. calculating the average price a random sample of consumers are willing to pay for a product.
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
Industries which receive government protection from trade pressures are likely to exhibit all of the following except
a) high levels of employment b) low levels of productivity c) a high proportion of unskilled workers d) monopoly power e) comparative advantage