1. Elasticity of demand for pharmaceuticals is - 0.44

Elasticity of demand for specialist visits = - 0.32

2. By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for pharmaceuticals.
4. By definition describe the elasticity of demand (elastic, inelastic, or unitary elastic) for specialist visits.
6. Which demand is more elastic?
8. Which demand is more inelastic?

3. Given the elasticities in number 1, which of the 2 goods (pharmaceuticals or specialist visits) will have a flatter demand curve?

4. 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).

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Elasticity of demand for pharmaceuticals Inelastic with elasticity 044 Elasticity of demand for spec... View the full answer