Percentage change in quantity = 20% Percentage change in price = 60% Price elasticity = 33.3% Percentage change of quantity = (80-100)/100 = 20/100 = 0.2 or 20% Percentage change of price = (400-250)/250 = 150/250 = 0.6 or 60% Price elasticity = 20%/60% = 0.333 or 33.3%

Using the numbers above. Calculate the price effect and the quantity effect in terms of their impact on the pharmaceutical firm's total revenue when the price goes up.