Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s).
-Recall the Application. When a patent ends and generic drugs are introduced, there is
A) downward pressure on the price of the patent version of the drug.
B) upward pressure on the price of the patent version of the drug.
C) no pressure on the price of the patent version of the drug.
D) no demand for the patent version of the drug.

Question

Quizplus · Accepted Answer

When generic drugs are introduced after the patent of a branded drug has expired, there is downward pressure on the price of the patent version of the drug. This is because the generic version is typically priced lower, which creates competition and puts pressure on the patent owner to lower their prices in order to remain competitive.

Recall the Application About Allegations That the Makers of Branded