--%>
Assignment Help - homework help

Technological innovations and demands for pharmaceuticals

Pharmaceutical companies have currently developed and tested drugs which reverse the affects of alcohol upon the brain only in a half hour. Such pills allow drivers to sober up before driving and to decrease the severity of hangovers. Within the past few years, various states have imposed stiff mandatory penalties for drunken driving confidences. How do you believe these two separate events will interact to affect alcohol consumption?

E

Expert

Verified

Alone, the pill raises the demand for alcohol, when stricter DUI as well as DWI laws and stiff enforcement reduce demand; the net consequence on alcohol consumption depends upon the relative magnitudes of such opposing shifts.

   Related Questions in Microeconomics

  • Q : Featherbedding-Carpenter union problem

    The carpenters union is capable to force agreement by the furniture manufacturer in Loblolly, North Carolina which the plant hire at least one carpenter per machine to ensure performance at such stations is proficient. This now outlawed strategy is termed as: (i) Feat

    		•
  • Q : Annual payments of financial investment

    When the interest rate is 5 percent and a financial investment produces annual payments of $50,000, in that case the present value of this asset is as: (w) $1,000,000. (x) $5,000,000. (y) $500,000. (z) $10,000,000.

    		•
  • Q : Prices decrement in price elasticity of

    When animal rights activists persuade several fur coat buyers to switch to micro-fiber jackets as well as pelt prices decrease from $150 to $50 each, resultant in the baby seal harvest decreasing from 18,000 to 6,000 yearly, in that case the price elasticity

    		•
  • Q : Purchasing power of Income Effects

    Whenever the price increases for a good that you enjoy extremely and purchase regularly: (i) The purchasing power of your income is reduced. (2) You adjust more rapidly than when the good was insignificant to you. (3) Your substitution effect is over-powered by an inc

    		•
  • Q : Determine water elasticity of production

    When 200,000 gallons of water are applied per acre, 4 tons are harvested by each acre of linguini trees yearly, but cutting back to 160,000 gallons causes the crop per acre to reduce to 2 tons yearly. Then water elasticity of linguini production is as

    		•
  • Q : Equilibrium Market Price by Rate of

    Assume that an existing apartment complicated is predicted to generate a consistent net of $1,250,000 cash flow per year into rent, after deducting all recurring variable costs (for example, taxes, utilities, and maintenance). When th

    		•
  • Q : Decrement in opportunity costs and

    Opportunity costs and prices tend to be decreased by: (w) competition among speculators and other intermediaries. (x) price floors. (y) the exercise of monopoly power. (z) price ceilings. How can I

    		•
  • Q : Maximize output by monopolists

    Economists suppose that most monopolists wish for maximize: (i) accounting profit. (ii) the prices they charge. (iii) total revenue. (iv) economic profit. (v) output. I need a good answer on the topic of Ec

    		•
  • Q : Problem on falling income causes

    I have a problem in economics on Problem on falling income causes increase in demand. Please help me in the following question. If falling income causes the demand for a good to rise, it is an: (1) Inferior good. (2) Costly biological necessity. (3) N

    		•
  • Q : Long-Run Adjustments Since longer time

    Since longer time periods are considered and a bigger range of adjustments (or substitutions) become accessible, demand curves tend to become: (i) Flatter, whereas supply curves become steeper. (ii) Steeper whereas supply curves become flatter. (iii) Flatter, and ther

    		•