During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because
A) with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward.
B) with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs.
C) more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs.
D) Both answers A and C are correct.
Correct Answer:
Verified
Q318: Q319: For consumers, goods A and B are Q320: When demand decreases and supply does not Q321: Suppose that people find out that eating Q322: Which of the following could increase the Q324: Throughout the 1990s, the price of four- Q325: We observe that both the equilibrium price Q326: If more people buy larger cars that Q327: If the price of cars falls, the Q328: Coffee and sugar are complements. If the![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents