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Merck produces a widely-used statin called ZOCOR that treats high cholesterol. In 2015 they set the price a $30 per 30-day supply. They sold 500,000 units (30-day supplies) that year. In 2016, they experimented with lowering the price to $15 per 30-day supply. They sold 700,000 units that year.
1. What is the elasticity of demand at the 2015 price?
2. What is the elasticity of demand at the 2016 price?
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