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. 
If the manufacturer of the new drug chose to increase its price from $30 to $35, consumers would buy ________ doses, and have ________ total expenditures.
A. fewer; lower
B. more; lower
C. fewer; higher
D. more; higher
Answer: C
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What accounts for specialization?
a. People specialize in the activity in which their opportunity costs are at a maximum. b. People specialize in the activity in which their opportunity costs are lowest. c. People do not specialize in any activity. d. People specialize in the activity that pays the highest wage. e. People specialize in the activity that they enjoy the most, no matter what the salary is.
Monetary reform is a new monetary policy that includes:
a. the introduction of a new unit of currency. b. a reduction in borrowing. c. an increase in government spending. d. the issuing of more currency. e. an increase in taxes.
Which of the following Gini coefficients represents the income distribution closest to being equal?
A. 0.02 B. 0.50 C. 0.10 D. 0.98
In a competitive market economy, firms select the least-cost production technique because
What will be an ideal response?