Injecto Subjecto Injector Producers And Novartis Company Case Solution

1. When we considering changing the price of a product, we should underscore not just the basic logic of price and quantity but also the factors which leads the producers to think about change. For some goods a small price change results in a big change in quantity demanded; for other goods, a big price change results in a small change in quantity demanded. If we consider the injections have an inelastic demand, according to demand theory; we can say that the percentage change in quantity is less than the percentage change in price. If the producers increase the price, total revenue will increase because the slightly higher price per injection sold will more than offset the decrease in injections sold. When the demand is inelastic, increasing the price to keep the revenues steady doesn’t seem like a bad idea.