Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties.An economist would expect to find that, after this announcement, the price of Retin-A ____ and the quantity sold ____.

Question

Quizplus · Accepted Answer

The announcement of previously unknown wrinkle-reducing properties of Retin-A implies that there is now an increased demand for the product. According to the law of demand, an increase in demand leads to an increase in price and quantity sold. Therefore, the price of Retin-A would rise and the quantity sold would also rise.

Some Medical Authorities Announced in the Late 1980s That an Acne