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Nexium and Protonix are 2 drugs that may be used to treat stomach ulcers. To purchase either of these drugs, prescription from an internal medicine...

1. Nexium and Protonix are 2 drugs that may be used to treat stomach ulcers. To purchase
either of these drugs, prescription from an internal medicine practitioner is required.
Suppose,
Price elasticity of demand for prescriptions = -0.60, and
Cross price elasticity of demand between Nexium and Protonix = 0.60
a. Are Nexium and Protonix complements or substitutes? Explain. [2 point]
b. If the fee for internal medicine practitioners goes up by 5%, calculate the change
in the quantity of prescriptions for Nexium? Interpret your result. [4 points]
c. If price of Nexium falls by 2%, calculate the change in the quantity demanded for
Protonix? Interpret your result. [4 points]
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Economics-8359000.doc

1. Nexium and Protonix are 2 drugs that may be used to treat stomach ulcers. To purchaseeither of these
drugs, prescription from an internal medicine practitioner is required.Suppose, Price...

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