Chapter 14

Question 1

What is the relationship between a patient’s income and the demand for physicians and elective surgery?

A. Decrease income means increase demand for physicians and elective surgery
B. Increase income means increase demand for physicians and elective surgery
C. Increase income means increase demand for self-treatment
D. Decrease income means decrease demand for self treatment

Answer 1

B. Increase income means increase demand for physicians and elective surgery

Question 2

A change in supply is affected by many factors, which of the following is not a factor that can bring about a change in supply?

A. Techniques of production, including technology
B. Resources of costs (materials and wages)
C. Number of consumers in the market
D. Number of sellers in the market

Answer 2

C. Number of consumers in the market

Question 3

What will happen if the supply of a drug is decreased (other variables remain unchanged) in a competitive market?

A. There is a change in the quantity supplied
B. Equilibrium quantity will fall
C. Equilibrium price will fall
D. The supply curve shifted to the right

Answer 3

B. Equilibrium quantity will fall

Question 4

Assuming that product A is a prescription drug depression whose price is relatively low, an increase in price will cause (other variables remain unchanged)?

A. Large decrease in quantity demanded.
B. Large increase in quantity demanded.
C. Small increase in the total revenue earned by the drug manufacture on product A.
D. Small increase in quantity demanded.

Answer 4

C. Small increase in the total revenue earned by the drug manufacture on product A.