Imagine an illness with two cures—drug x and drug y. drug x and drug y are both made by the same firm.

two events recently happened. first, a study was released showing that drug x is less effective than drug y. second, the ingredients used to produce drug x increased in price. what are the consequences of these events?

choose one:

a. the demand for drug x shifts to the right, and the supply of drug x shifts to the left. the result is a rise in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.

b. the demand for drug x shifts to the right, and the supply curve for drug x shifts to the left. the result is an unknown change in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.

c. the demand for drug x shifts to the left, and the supply curve for drug x shifts to the left. the result is an unknown change in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.

d. the demand for drug x shifts to the left, and the supply curve for drug x shifts to the left. the result is a rise in the equilibrium price for drug x and a fall in the equilibrium quantity of drug x.