Suppose a new drug can cure cancer it costs a few cents to


Suppose a new drug can cure cancer. It costs a few cents to make the pill, and one pill can stop a malignant growth with zero side effects. The drug goes on sale for a few cents a pill, and although the manufacturer makes millions, the money value of the produc- tion is tiny. Is it right that GDP has not really changed much? What would the price index, both before and after the invention and sale of the drug, look like?

Solution Preview :

Prepared by a verified Expert
Microeconomics: Suppose a new drug can cure cancer it costs a few cents to
Reference No:- TGS01181191

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)