What is the elasticity on the part of animal owners

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VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that at the current per dose price, the elasticity on the part of animal owners is -2.0. The research also estimates that at this price the elasticity of demand for human use would be -0.2. The current price is $5.00 per dose. If the MC of production is $1.00, what should the company do?

Reference no: EM13221329

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