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Posted: March 29th, 2024
Price Elasticity of Demand, economics homework help
Question description
In no more than two short paragraph, answer the following question, including appropriate graphs.Which do you think has a higher price elasticity of demand, Pain-B-Gone, a pain-relieving medication available over the counter in many drugstores, or chemotherapy treatment that uses drugs to destroy cancer cells? Explain your answer. In your explanation, discuss the existence of substitutes, and very briefly describe what would happen to equilibrium price and quantities of these two products should supply for either of them shift downward (and to the right). You will of course need to consider the demand curves of each product, and where and how they intersect the supply curves.
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