If insulin an inelastic good, raising the price will tend to lead to... a) higher costs. b) lower revenue. c) higher revenue. d) lower costs.

Raising the price of insulin, an inelastic good, means that the quantity demanded will not significantly decline because many people with diabetes depend on it for their health and well-being. Therefore, if the price goes up, the revenue generated from sales will likely increase, as consumers will continue to purchase approximately the same amount despite the price hike. In practice, this creates a challenging situation where pharmaceutical companies might see higher profits, but it also raises ethical concerns about accessibility and affordability for patients who need insulin to survive. Understanding this dynamic can help policymakers address essential health care issues.