After the Patent Runs Out on a Brand Name Drug

question 71

Multiple Choice

After the patent runs out on a brand name drug, generic drugs enter the market. What happens next in the market?

• A)Price increases, and total surplus decreases.
• B)Price decreases, and total surplus decreases.
• C)Price decreases, and total surplus increases.
• D)Price increases, and total surplus increases.

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Definitions:

Proteins

Large, complex molecules essential to all living organisms, playing critical roles in the body such as catalyzing metabolic reactions, DNA replication, and transporting molecules.

Phenylketonuria

A genetic disorder characterized by the body's inability to break down the amino acid phenylalanine, leading to potential brain damage and cognitive impairment.

Sickle Cell Anemia

An inherited form of anemia in which there is an abnormality in the hemoglobin beta chains; the inheritance pattern is autosomal recessive.

Cystic Fibrosis

A genetic disorder affecting the lungs and digestive system, characterized by thick, sticky mucus that can lead to severe respiratory and digestive problems.