VetPharm has historically produced and sold drugs for animals; however,one of its products developed for animal use has recently been approved for a similar use in humans.Market research has revealed that that at the current per dose price,the elasticity of demand on the part of animal owners is -2.0.The research also estimates that at this price the elasticity of demand for human use would be -.2.The current price is $5.00 per dose.If the MC of production is $1,what should the company do?
a.reduce animal price; reduce human price.
b.raise animal price; raise human price.
c.reduce animal price; raise human price.
d.raise animal price; reduce human price.
[The above question was inspired by a question by Victor Tabush]

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The Answer of VetPharm has historically produced and sold drugs for animals; however,one of its products developed for animal use has recently been approved for a similar use in humans.Market research has revealed that that at the current per dose price,the elasticity of demand on the part of animal owners is -2.0.The research also estimates that at this price the elasticity of demand for human use would be -.2.The current price is $5.00 per dose.If the MC of production is $1,what should the company do?
a.reduce animal price; reduce human price.
b.raise animal price; raise human price.
c.reduce animal price; raise human price.
d.raise animal price; reduce human price.
[The above question was inspired by a question by Victor Tabush]

VetPharm Has Historically Produced and Sold Drugs for Animals; However,one