Suppose That a New Drug Has Been Approved to Treat

question 76

Multiple Choice

Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. The manufacturer of the over-the-counter pain reliever would _______ total revenue by increasing the price from $15 to $16.

• A)increase
• B)decrease
• C)experience no change in
• D)experience an uncertain change in

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Definitions:

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another neuron or to a target cell.

Amphetamine

A potent central nervous system stimulant that is used in the treatment of attention deficit hyperactivity disorder (ADHD), narcolepsy, and for weight loss, but can also be abused as a recreational drug.

Tranquilizers

Medications used to reduce tension or anxiety, often by depressing the central nervous system.

Placebos

Inactive substances or treatments used as a control in experiments, often to test the effectiveness of medical drugs.