(3) MelCo's Kamo' lI'he global pharmaceuticals giant, llilellilo1 has had great success with Kamoff1 and over-the counter medicine that reduces examrelated anxiety. A patent currently protects Xamoff from competition, although rumors persist that similar products are in development. Two years ago, MelCo sold 25 million units for a price of 31D for a package of ten. Last year it raised the price to $1 11 and sales fell to 22 million units. {a} Estimate the elasticity of demand for this product. [h] MelCo is considering a further price increase to $12- Estimate the impact on the quantity sold. Do you expect revenue to increase or decrease? {c} A nancial analyst estimates the cost of production at $2 a package- What price maximizes Mel-Co's prot? [d] When the patent expires in 213, what do you expect to happen to demand? What about the elasticity