BioMed Pharmaceutical has held a patent on an important heart medicati

BioMed Pharmaceutical has held a patent on an important heart medication called Heartex, but the patent will expire in the coming year. After the patent expires, other firms can legally sell the same medication as a generic drug product.

What will happens to the demand for Heartex and to the Lerner index for this product as the generic drugs enter the market? A) Demand becomes less elastic, Lerner index increases
B) Demand becomes less elastic, Lerner index declines
C) Demand becomes more elastic, Lerner index increases
D) Demand becomes more elastic, Lerner index declines

ANSWER

D