Suppose That a New Drug Has Been Approved to Treat

Multiple Choice

Suppose that a new drug has been approved to treat a life-threatening disease.Demand for that drug is shown on the graph below.Prior to approval of this drug,the only treatment for this condition was non-prescription pain relief.Demand for one brand of non-prescription pain reliever is also shown on the graph below.
Refer to the figure above.The main reason for the difference in the slopes of the demand curves is that:

A) one drug has many substitutes and the other does not.
B) one drug is new on the market and the other has been available for a long time.
C) one drug is heavily regulated by the Food and Drug Administration and the other is not.
D) one market is in equilibrium and the other is not.