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.
-In determining the quantity of drugs that it will be willing to sell at different prices,New Age management will actually be developing a demand curve.

Question

Quizplus · Accepted Answer

A demand curve is determined by consumer demand, not by the quantity a company is willing to sell at different prices.