When the drug Vioxx was pulled from the market by pharmaceutical company Merck due to its association with heart problems, the demand for other pain medications:
A. decreased, putting upward pressure on their price.
B. decreased, putting downward pressure on their price.
C. increased, putting downward pressure on their price.
D. increased, putting upward pressure on their price.
Answer: D
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In perfect competition, the firm's marginal revenue curve
A) cuts its demand curve from below, going from left to right. B) cuts its demand curve from above, going from left to right. C) always lies below its demand curve. D) is the same as its demand curve.
If a firm is selling a quantity that is NOT on its best-response curve it
A) will go out of business. B) is in a Nash equilibrium. C) will want to change its behavior. D) is operating in a duopoly.
What are the prerequisites for money creation?
Globalization is becoming more of a worldwide phenomenon because
a. more countries want to become self-sufficient. b. less-developed countries are increasing their trade restrictions. c. technological advancements are decreasing transportation costs. d. trade hurts workers in poor countries.