New Age Pharmaceuticals Inc. produces two limited lines of drugs—one for common maladies and one for rarer conditions and diseases. The majority of its business comes from the tried-and-true drugs that most Americans have been using for many years, but the new growth area in the pharmaceutical industry is in high-priced new drugs. New Age management believes that the company’s research-and-development operations are sufficiently effective and efficient enough to develop six new prescription drugs that will start showing a profit within 12 months of their roll-outs. Currently more than 4 million people use New Age products.
-New Age's customers will typically be willing to buy more of a product when prices are coming down and less when they're on the rise.

Question

Quizplus · Accepted Answer

The statement describes a typical demand behavior where consumers are more inclined to purchase more when prices decrease and less when prices increase, which aligns with basic economic principles of demand.