Prior to 1996, Upjohn Company's hair regrowth product, Rogain, required a prescription. It retailed for approximately $50 a bottle (2fl. oz). Then in early 1996 Upjohn obtained approval from the Federal Drug Administration to sell Rogain without a prescription. The retail price was reduced sharply to approximately $30 a bottle. Using the principles of elasticity, draw a demand schedule that justifies Upjohn's decision to cut the price from $50 to $30.

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Suppose that when the price was 50 a bottle the firm was sell... View the full answer