Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of

What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?

a. The firm will go out of business. b. Consumers will substitute a rival's product. c. Consumers will boycott the product. d. The government will regulate the price.

Retired persons travel by bus and automobile more frequently than do business executives, who more commonly use air travel. An economic explanation for this would be that

a. business executives have more time to travel. b. it is more important for retired persons to save time. c. business executives value their time more highly. d. retired persons have more money than do business executives.