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. Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________. A) the horizontal line at $60; the line labeled B B) the line labeled B; the line labeled A C) the line labeled A; the line labeled B D) the vertical line at 100; the line labeled A
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. Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________. A) the horizontal line at $60; the line labeled B B) the line labeled B; the line labeled A C) the line labeled A; the line labeled B D) the vertical line at 100; the line labeled A
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.
A) the horizontal line at $60; the line labeled B
B) the line labeled B; the line labeled A
C) the line labeled A; the line labeled B
D) the vertical line at 100; the line labeled A
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