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Elasticity of Contraception

Oral contraceptive demand is extremely inelastic.

Emily Gray Collins and Brad Hershbein report that a 200% increase in the price of oral contraceptives led to a decline in purchases of 2-4%. That’s an elasticity of –0.02.

Via Marginal Revolution.

Technorati Tags: oral,contraceptive,elasticity

Posted on February 22, 2012 at 07:02 AM in Managerial Economics | Permalink

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