Mathematics, 31.01.2020 09:54 dontcareanyonemo
Imagine an illness with two cures—drug x and drug y. drug x and drug y are both made by the same firm.
two events recently happened. first, a study was released showing that drug x is less effective than drug y. second, the ingredients used to produce drug x increased in price. what are the consequences of these events?
choose one:
a. the demand for drug x shifts to the right, and the supply of drug x shifts to the left. the result is a rise in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.
b. the demand for drug x shifts to the right, and the supply curve for drug x shifts to the left. the result is an unknown change in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.
c. the demand for drug x shifts to the left, and the supply curve for drug x shifts to the left. the result is an unknown change in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.
d. the demand for drug x shifts to the left, and the supply curve for drug x shifts to the left. the result is a rise in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.
Answers: 1
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