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Pfizer sells Atgam in New Zealand for $14/pill and Brazil for $8/pill. This implies that the demand curve in New Zealand must be ________ than in Brazil.

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User Hatesms
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1 Answer

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Final answer:

Pfizer sells Atgam in New Zealand for $14/pill and Brazil for $8/pill. This implies that the demand curve in New Zealand must be more inelastic than in Brazil.

Step-by-step explanation:

If Pfizer sells Atgam in New Zealand for $14/pill and in Brazil for $8/pill, it implies that the demand curve in New Zealand is more inelastic than in Brazil. An inelastic demand curve is characterized by a smaller percentage change in demand for a given percentage change in price. Consumers in New Zealand are less sensitive to price changes, meaning they would continue to buy the drug despite higher prices compared to consumers in Brazil.

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User TangledUpInBlue
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