Question

A pharmaceutical company introduces a new life-saving drug with no close substitutes. The company has a patent on the drug, giving it a monopoly in the market. The drug is expensive to produce, and the company sets a high price for it. In this situation, the demand for the new drug is likely to be:

A Perfectly elastic.
B Relatively elastic.
C Unitary elastic.
D Relatively inelastic.
E Perfectly inelastic.
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