Multiple Choice
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. 
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) more; higher
B) fewer; lower
C) more; lower
D) fewer; higher
Correct Answer:
Verified
Correct Answer:
Verified
Q63: On a given linear demand curve, as
Q64: If bagels and cereal are substitutes, then
Q65: If 20 percent increase in the price of
Q66: Jeans in general have fewer close substitutes
Q67: If the demand for a good is
Q69: Demand tends to be _ in the
Q70: Suppose that a new drug has been
Q71: In 1985 a desert community stopped pumping
Q72: Which of the following determines whether a
Q73: If the price of cheese falls by