What are the trade-offs involved in shortening the length of a patent for pharmaceuticals?
What will be an ideal response?
On the one hand, shortening the length of a patent will lead to reduced profits by drug companies and increased competition, meaning lower prices for consumers. On the other hand, reducing this legal monopoly period will reduce the incentive to invest in research and development, and fewer pharmaceuticals may be invented.
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Which of the following is FALSE regarding inelastic demand?
A) Price elasticity of demand is less than 1 (Ep < 1). B) If a firm raises price, total revenues will go up. C) Price elasticity of demand is greater than 1 (Ep > 1). D) If a firm lowers price, total revenues will fall.
Compared to high-income families, low-income families tend to have
a. more earners per family. b. fewer persons per family. c. more full-time workers per family. d. both b and c.