Cross elasticity of demand (XED) calculates the change in the quantity demanded of a good when the price for another good changes. In the previous post, we saw instances of high levels of elasticity in the pharmaceutical industry. In the real world, however, the...
In the pharmaceutical industry, from a price and demand standpoint, all drugs are not created equal. In our daily practice with price elasticity, we find several instances in which drugs show a high level of demand variation whenever there is a change in price. Price...
When the price of medicines rises, does the amount demanded fall? And when the price falls, does the demand rise? The law of supply and demand is arguably one of the most solid tenets of microeconomics. It states that, all other things being equal, when the price of...