After spending 10 years and $1.5 billion, you have finally gotten the Food and Drug Administrationís approval to sell your patended wonder drug which reduces he aches and pains associated with aging. Market research indicates that the elasticity of demand for your drug is -1.25 and you estimate the marginal cost of manufacturing and selling on additional dose to be $1.
a. What is the profit maximizing price per dose of your drug?
b. Would you expect the elasticity of demand you face to rise or fall when your patent expires?