The "You can't take it with you" effect potentially increases market power for pharmaceuticals if consumers who are dying of disease are also:
A) more inclined to spend their money on medicine than to save it.
B) more inclined to bequeath their money than spend it on medicine.
C) relatively sensitive to the price of life-saving pharmaceuticals.
D) relatively sensitive to how they spend money.

Question

Quizplus · Accepted Answer

The statement "You can't take it with you" implies that people are more willing to spend their money if they know they cannot take it with them after they die. This may cause dying consumers to prioritize spending their money on life-saving pharmaceuticals instead of saving it, potentially increasing market power for pharmaceutical manufacturers.

The "You Can't Take It with You" Effect Potentially Increases