Suppose drug companies come out with new wonder-drugs capable of curing the common cold. What is the most likely effect on the demand for physicians' services?
A) The demand will become more elastic.
B) The demand will become more inelastic.
C) The demand will decrease if government or private insurance pays all or most of the physicians' fees.
D) The demand will increase if the drugs can only be obtained with a physician's prescription.
E) The demand will not change, though the quantity demanded almost certainly will.
Question 2
Competition
A) cannot be eliminated unless scarcity is eliminated.
B) causes people to hope others will fail.
C) compels people to do only what is in the public interest.
D) only exists in capitalist societies.
E) only exists in societies with fiat currency.
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