Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. 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.
Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.
A. the vertical line at 100; the line labeled A
B. the line labeled A; the line labeled B
C. the horizontal line at $60; the line labeled B
D. the line labeled B; the line labeled A
Answer: B
You might also like to view...
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy gets 25 and Amy gets 225. B. Tracy gets 300 and Amy gets 200. C. Tracy gets 75 and Amy gets 150. D. Tracy and Amy both get 125.
Which of the following is a capital resource?
A. a computer programmer B. silicon (sand) used to make computer chips C. a corporate bond issued by a computer manufacturer D. a piece of software used by a firm
The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The price of cotton in Georgestan is
A) 30 cents per pound. B) 40 cents per pound. C) 60 cents per pound. D) 50 cents per pound.
Customer discrimination occurs when
A) a firm pays workers different wages based on irrelevant factors. B) workers refuse to serve customers of a different race. C) customers refuse to buy products produced by a racially diverse workforce. D) customers refuse to buy products they believe to be of poor quality.