a. (5) In 1992, shortly after Pfizer received the patent for Lipitor, the demand for cholesterol medication increased, as medical reports made more people aware of the dangers of high cholesterol. Explain the effectsin the short runof this increased demand for cholesterol medication on the price of cholesterol medication, Pfizer's profits, the number of cholesterol medication producers, and supply of cholesterol medication."Explain" means "state what will happen and say why it will happen." Will the price of cholesterol medication be higher than, lower than, or the same as $500?

b. (10) Consider now the period from1992 (when demand increased) through to 2010. Pfizer's patent was still in place during this period. Explain the effects in this period of the increased demand for cholesterol medication on the price of cholesterol medication, the profits of cholesterol medication producers, the number of cholesterol medication producers, and the supply of cholesterol medication.A full-credit explanation will give a correct accounting of what causes what; that is, it is not sufficient to list the changes in price, profits, number of producers, and supply - those changes must be presented in the proper order, with explanations of what causes what to happen. Will the price of cholesterol medication be higher than, lower than, or the same as $500?

c. (10) In 2011, Pfizer's patent on Lipitor expired. Explain what happened after 2011 to the price of cholesterol medication, the profits of cholesterol medication producers, the number of cholesterol medication producers, and the supply of cholesterol medication.A full-credit explanation will give a correct accounting of what causes what; that is, it is not sufficient to list the changes in price, profits, number of producers, and supply - those changes must be presented in the proper order, with explanations of what causes what to happen. Will the price of cholesterol medication be higher than, lower than, or the same as $500?