If the demand curve for Pfizer's Norvasc, a blood pressure medication, is more elastic in the United
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Question:
If the demand curve for Pfizer's Norvasc, a blood pressure medication, is more elastic in the United States than it is in Mexico, how could Pfizer use this information to maximize their profits?
1)Since Mexico is a poorer country than the United States, in this situation it makes more sense for Pfizer to charge only one price in both countries.
2)They could segment the markets and charge a higher price for Norvasc in Mexico than in the United States.
3)They could segment the markets and charge a lower price for Norvasc in Mexico than in the United States.
4)They could choose to sell Norvasc only in Mexico.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: