PLEASE ANSWER ALL QUESTIONS. 1. Elasticity of demand for pharmaceuticals is - 0.44 Elasticity of demand...
PLEASE ANSWER ALL QUESTIONS.
1. Elasticity of demand for pharmaceuticals is - 0.44
Elasticity of demand for specialist visits = - 0.32
- By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for pharmaceuticals.
- By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for specialist visits.
- Which demand is more elastic?
- Which demand is more inelastic?
- Given the elasticities in number 1, which of the 2 goods (pharmaceuticals or specialist visits) will have a flatter demand curve?
- When Pfizer raised the price of Chantix by 20%, everything else equal how will this affect revenue from Chantix? Assume the pharmaceutical elasticity given in number 1 (no computation required).
Homework Answers
a. The elasticity of demand for pharmaceuticals is inelastic as its absolute value is less than 1, that is, 0.44 < 1.
b. The elasticity of demand for specialist visits is inelastic as its absolute value is less than 1, that is, 0.32 < 1.
c. The demand for pharmaceuticals is more elastic as 0.44 > 0.32.
d. The demand for specialist visits is more inelastic as 0.32 < 0.44.
Pharmaceuticals will have a flatter demand curve as its demand
is more elastic.
Revenue from Chantix will increase because the demand is inelastic,
so increasing the price will increase the revenue.
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PLEASE ANSWER ALL QUESTIONS.
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Could someone take note for me from this paragraph with explantation. Thank you in advance CUPTERS...
Could someone take note for me from this paragraph with
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Panel B.
Refer to Figure 5-5. The data in the diagram indicates that
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Could someone take note for me from this paragraph with
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Refer to Figure 5-1. A perfectly elastic demand curve is shown
in
Panel D.
Panel A.
Panel C.
Panel B.
Refer to Figure 5-5. The data in the diagram indicates that
DVDs
are luxury goods.
are both luxury goods and price inelastic goods.
are price inelastic goods.
are both necessities and price inelastic goods.
are necessities.
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