FIN30210 Lecture Notes - Lecture 6: Securities Fraud, Dont, Demand Curve
Document Summary
Lesson 4 - elasticity - in addition to slides. They weren"t making revenue with the previous price. Higher costs than just making the drug itself (than just the ingredients) Which doesn"t actually matter because the peers that are selling drugs were selling drugs for different diseases. There are no substitutes for this drug so there"s no connection there. Costs are going up (though not by 5,000%) Taking the money and reinvesting it back into making a better drug. That"s why he got arrested securities fraud (investment fraud) None of these costs would actually fall much on individuals. Disguises all of these things as cost implications, but we debunked all of them. This is where elasticity comes into play. Measuring a responsiveness of the quantity demanded to changes in price. Because it"s really difficult when you have different goods and you want to compare them. So need something that"s not unit-dependent and can compare different goods.
