Welcome to the discussion of week 2.

Consumer and producer supply, demand and surpluses Drug producers produce the generic aspirin: salicylic acetyl acid. They sell it at prices lower than those of nongenetic drugs or also called "brand name" drugs, such as Bayer aspirin.

1. the substitution of brand-name medicines (such as Bayer aspirin) for generic medicines (such as salicylic acetyl acid) increases or decrease the consumer's surplus?

2. Does the availability of generic aspirin increase or decrease the producer's surplus for Bayer?

3. Does the availability of generic aspirin help to bring aspirin production closer to the efficient quantity?

Attention: This week's theme aims to give you the opportunity to further reflect on how markets work. you will need to explore and become familiar with the supply and demand model. The supply and demand model is a basic tool used by economists to illustrate the behavior of markets by illustrating the impact on prices and quantities of 4 possible scenarios: increasing and decreasing supply, and increasing and decreasing demand. Specifically, this week you will have to explain the impact on prices and balancing quantities on the market of a good or services when the production of a related good or service increases. You must demonstrate understanding of the following concepts: related goods or services, substitute goods or services, complementary goods or services, producer surplus and consumer surplus.