Novo Nordisk Will Cut Some U.S. Insulin Prices By Up To 75% Starting Next Year

Novo Nordisk will slash insulin prices next year, following a path set by rival Eli Lilly. Patients have long called for insulin price cuts. High insulin prices force many people to ration doses, which can be dangerous for their health. Insulin prices have more than tripled in the last two decades. —npr.org

Answer the following questions to check your understanding of the story.

1) Is the demand for insulin elastic or inelastic? Why?

The demand for insulin is _____________.

2) How will the total revenue of a firm that produces insulin change when the price falls?

Total revenue will ____________ because the percentage increase in quantity demanded is ____________ than the percentage decrease in price.

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