Europe has eight different companies selling devices similar to the Epi pen. If these devices were available for use in the U.S. market, you would expect price elasticity of demand to become less elastic. This would also lead Mylan to charge a lower price.
Price elasticity of demand is the ratio of the share trade in quantity demanded of a product to the proportion exchange in rate. Economists hire it to understand how deliver and call for alternate whilst a product's fee changes.
The four elements that have an effect on price elasticity of demand are availability of substitutes, if the good is a luxurious or a need, the percentage of profits spent on the best, and what kind of time has elapsed since the time the fee changed.
How is price elasticity measured?
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a alternate in its rate. It's miles computed as the proportion change in quantity demanded or supplied divided through the percentage exchange in rate.
How does price elasticity affect call for?
Price elasticity of demand compares trade in intake to alternate in charge. Price elasticity of demand measures the trade in consumption of a terrific as a result of a exchange in rate. It's miles calculated by dividing the percent trade in consumption by means of the percentage change in price.
Learn more about price elasticity here:- brainly.com/question/5078326
#SPJ4
