Suppose that a new drug has been approved to treat a life-threatening disease. Demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was non-prescription pain relief. Demand for one brand of non-prescription pain reliever is also shown on the graph below. A. (5 points) Which one (A or B) shows the demand for the new drug? Which one is the demand for the pain reliever? Explain your answer. B. (5 points) At a price of $15, what is larger (in absolute value): the price elasticity of demand for the new drug or the price elasticity of demand for the over-the-counter pain reliever? Why? 3 C. (5 points) Suppose all the revenue from selling the new drug is going to one manufacturer and he is thinking of increasing the price from $15 to $25. Would this price change increase or decrease the manufacturer's total revenue? D. (5 points) If the manufacturer of the new drug were to increase its price from $90 to $100, what would happen to the quantity of the new drug consumers would purchase? What would happen to their total expenditures? Explain.