Elasticity of Demand for Prescription Drugs Is Estimated to Be

question 3

Multiple Choice

Elasticity of demand for prescription drugs is estimated to be much lower than elasticity of demand for one particular brand of over-the-counter cough medicine.One reason for this is

• A)there are many substitutes for prescription drugs in the short run.
• B)there are many substitutes for prescription drugs in the long run.
• C)there are no substitutes for one brand of cough medicine in the short run.
• D)there are no substitutes for one brand of cough medicine in the long run.
• E)there are few substitutes for the broad category of prescription drugs while there are many substitutes for one brand of cough medicine.

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Definitions:

Omnichannel Retailing

A multichannel approach to sales that aims to provide customers with a seamless shopping experience, whether they shop online from a mobile device, a laptop, or in a brick-and-mortar store.

Pricing

The process of determining the value that will be charged for a product or service, taking into account costs, market conditions, and customer perception.

Store-based Retailers

Store-based retailers operate physical locations where customers can browse and purchase goods in person, offering a tangible shopping experience.

Internet Channel

Digital pathways through which information, goods, or services are delivered over the internet, including websites, email, and social media.