What is the elasticity of demand at the 2015 price

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Merck produces a widely-used statin called ZOCOR that treats high cholesterol. In 2015 they set the price a $30 per 30-day supply. They sold 500,000 units (30-day supplies) that year. In 2016, they experimented with lowering the price to $15 per 30-day supply. They sold 700,000 units that year.

1. What is the elasticity of demand at the 2015 price?

2. What is the elasticity of demand at the 2016 price?

Reference no: EM132113468

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