Suppose That a New Drug Has Been Approved to Treat

question 66

Multiple Choice

Suppose that a new drug has been approved to treat a life-threatening disease.Demand for that drug is shown on the graph below.Prior to approval of this drug,the only treatment for this condition was non-prescription pain relief.Demand for one brand of non-prescription pain reliever is also shown on the graph below.
Refer to the figure above.The main reason for the difference in the slopes of the demand curves is that:

• A) one drug has many substitutes and the other does not.
• B) one drug is new on the market and the other has been available for a long time.
• C) one drug is heavily regulated by the Food and Drug Administration and the other is not.
• D) one market is in equilibrium and the other is not.

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Definitions:

Self-Esteem

A person's personal assessment of their value.

Need For Cognition

A psychological tendency to engage in and enjoy effortful thinking, problem-solving, and the exploration of complex issues.

Central Route

A pathway of persuasion based on the thoughtful and analytical consideration of arguments, leading to lasting attitude change.

Self-Esteem

An individual’s overall subjective emotional evaluation of their own worth, which can affect their mental health and motivation.