Suppose Well-Made Pharmaceuticals knows that its newest prescription drug can cause severe side-effects, but it doesn't inform the users of the prescriptions about these side-effects. When the side-effects become public knowledge after an investigation,
A. the demand curve will shift to the right.
B. the price will decrease.
C. the supply curve will shift to the left.
D. the quantity will increase.
Answer: B
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The absence of the Southern economy's ability to earn foreign exchange and its markets severely impacted all non-local trade in the U.S. after the Civil War
Indicate whether the statement is true or false
All of the following are possible characteristics of oligopoly except
a. free entry into the industry. b. significant economies of scale. c. interdependence among sellers. d. homogeneous product.
A firm that is the sole producer of a good or service with no close substitutes is called a:
A. monopolist. B. perfectly competitive firm. C. oligopolist. D. monopolistically competitive firm.
If markets for addictive drugs have a more elastic demand curve than is often thought, and if addicts tend to be unstable people with low incomes, we might speculate that the most likely reason for the surprising elasticity estimates is that
A. addictive drugs are inferior goods. B. the income and substitution effects work in opposite directions. C. the substitution effect is smaller than expected because addicts aren't as addicted as we thought. D. the income effect has a more constraining effect than we had anticipated.