6) Suppose you are in charge of sales at Novartis (the largest pharmaceutical compa-ny) and your company sells a drug that causes bald men to grow hair. You calculate that price elasticity of demand for this drug at the current market price is -1.4. What type of price elasticity of demand does Novartis drug have? a. Elastic b. Inelastic c. Perfectly elastic d. Perfectly inelastic

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Chapter5: Elasticity
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Problem 6SCQ: Suppose you are in change of sales at a pharmaceutical company, and your firm has a new drug that...
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6) Suppose you are in charge of sales at Novartis (the largest pharmaceutical compa-ny) and your company sells a drug that causes bald men to grow hair. You calculate that price elasticity of demand for this drug at the current market price is -1.4.

 

What type of price elasticity of demand does Novartis drug have?

 

a. Elastic

 

b. Inelastic

 

c. Perfectly elastic

 

d. Perfectly inelastic

 

e. Unit elastic

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