Dr. Jing Luo says the list price of insulin- the price set by manufacturers but not necessarily what patients or providers pay - has increased between 300% to 500%. That's because there are a limited number of manufactures in the U.S., he says. "When you have a setting where there [are] only a few suppliers, but the demand for the medication is quite great," he says, "it results in a situation where manufacturers can raise their prices without much blowback." While this doctor referred to supply and demand, there is another matter involved. Which of these is it? Elasticity O The Marginal Principle O Diminishing Returns

Dr. Jing Luo says the list price of insulin- the price set by manufacturers but not necessarily what patients or providers pay - has increased between 300% to 500%. That's because there are a limited number of manufactures in the U.S., he says. "When you have a setting where there [are] only a few suppliers, but the demand for the medication is quite great," he says, "it results in a situation where manufacturers can raise their prices without much blowback." While this doctor referred to supply and demand, there is another matter involved. Which of these is it? Elasticity O The Marginal Principle O Diminishing Returns

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 13P

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Suppose that managers at Honda are deciding how to price the new Honda Accord. The managers estimate that their total costs increase by $20,000 for each car they produce. They also estimate the demand curve they face; it is described by the equation: Q = -0.4 P + 16,000, where Q represents the quantity of Honda Accords they will sell and P represents the price they charge in US dollars. We can re-write that demand curve as: P = 40,000 - 2.5 Q. Take every possibly quantity that the managers might choose between 0 and 7,000 in units of 100. For each possible quantity, calculate the associated price the managers would need to charge, the revenue they would earn, and the total costs. You can then calculate profits for each level of quantity. Highlight the cell that contains the highest value of profit.
U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Explain why these companies, for profifit reasons, oppose laws allowing reimportation of drugs to the United States.
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With the outbreak of COVID-19, many people in Hong Kong choose cooking athome instead of dining out to reduce the chance of contacting Coronavirus. At thesame time, it is observed that many restaurants have closed down.Given that many restaurants cut their menu prices in this period, explain, with theaid of a supply-and-demand diagram, how the above changes affect the market fordining out meals in restaurants.
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Which one is the level of demand for the attractions (general) (any) in uk? and which attraction in uk is the most demanded?
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What is the calculation for E= Question is : Adam makes specialized garden figurines in a small shop on his property , and his monthly total sales revenue is $630.00 when he charges $18.00 for each figurine . one month , he tried lowering his price to $17.00 , and his total revenue that month was $646.00 . On the basis of these data , what is the proce elasticity of demand for adams product ? Please show what formula you use and steps to calculate so i can know how thank you.