What Happens to the Price and Quantity Sold of a Drug

question 97

Multiple Choice

What happens to the price and quantity sold of a drug when its patent runs out? (i)
The price will fall.
(ii)
The quantity sold will fall.
(iii)
The marginal cost of producing the drug will rise.

• A)(i) only
• B)(i) and (ii) only
• C)(ii) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Basilar Membrane

A structure in the cochlea of the inner ear that plays a critical role in the sense of hearing by vibrating in response to sound waves.

Cochlea

A spiral-shaped cavity within the inner ear, functioning in the process of converting sound waves into neural signals.

Basilar Membrane

A key structure in the cochlea of the inner ear that plays a critical role in sound perception by vibrating in response to sound waves.

Semicircular Canals

Three fluid-filled tubular canals in the inner ear that sense the rotation of the head.