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Suppose a pharmaceutical company increases the price of insulin from $25 per vial to $50 per vial. At $25 per vial, the equilibrium quantity is 100 per day. At $50 per vial the equilibrium quantity is 90 vials per day. Calculate price elasticity of demand. What is the price effect and the quantity effect in terms of their impact on the pharmaceutical firm’s total revenue?
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Suppose a pharmaceutical company increases the price of insulin from $25 per vial to $50 per vial. A...
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