Suppose a pharmaceutical company increases the price of insulin from $25 per vial to $50 per vial. At $25 per vial, the equilibrium quantity is 100 per day. At $50 per vial the equilibrium quantity is 90 vials per day. Calculate price elasticity of demand. What is the price effect and the quantity effect in terms of their impact on the pharmaceutical firm’s total revenue?

Diabetes is no small issue in the United States. There are approximately 30.3 million people with diabetes in the U.S., according to the Diabetes Research Institute. Five percent of them—or about 1.5 million people—have type 1 diabetes and require insulin to survive. Some people with type 2 diabetes can control blood sugar with diet and activity. Still, many need insulin, especially as the condition progresses.

And, unfortunately, insulin prices have risen dramatically over the past 10 years. Between 2012 and 2016, the price almost doubled, according to the Health Care Cost Institute. In 2012, the average cost of insulin per diabetes patient was $2,864 per year. By 2016, it had risen to $5,705. Today, one vial of insulin can cost $250, and some people need six vials per month.

In addition to that, there are other diabetes supplies, such as a glucose monitor, test strips, lancets, and a safe place to store used syringes or pens. It could easily cost someone without insurance $1,300 per month to care for the condition. Even with insurance, copayments and supplies can eat away at your monthly budget. Luckily, there are savings options.

ok this has nothing to do with business

answer; risk transference;