Microeconomics fall20 During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever

Economics Nov 11, 2020

Microeconomics fall20 During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because Select one: O a. Both answers A and C are correct. b. more new firms entered the pharmaceutical industry each year, which caused a rightward shift in the supply curve of prescription drugs. O c. with higher incomes and more older Americans, we have moved rightward along our demand curve for drugs O d. with higher incomes and more older Americans, the demand curve for prescription drugs has shifted rightward. Next page on mali

Expert Solution

Answer-

the correct answer is C.

There is an increase in the income among Americans and there are old people in the country that is the reason the prescribed drugs are increasing.

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