4 questions A patent plays a major role in terms of preventing other individuals from selling a given product for a given period. In this case, it is true that patents insulate inventors from rivalry, enabling them to charge higher prices and realize considerable economic profits. In the case of the pharmaceutical company, its revenues and profits will drop considerably once it loses patent protection. Without patent protection, it will be possible for other firms in the marketplace to introduce a similar product in the market, which will rival with the one of the pharmaceutical company. In this case, the company will start realizing reduced economic profits and eventually start counting losses. (Alden, 2014)To mitigate from this situation, it is appropriate for the pharmaceutical company to understand that loss of patents leads to generic competition, which influences future performance of the company. As such, one of the major ways in which the company can mitigate the losses incurred is by remaining dedicated to research and development (R&D) to help it introduce other patents that will raise its competitiveness, productivity, and profitability in the marketplace (Alden, 2014).Price elasticity of demand refers to an economics measure that is used in showing the responsiveness of demand to changes in prices of goods and services when other factors are held constant. It reflects a percentage change in the overall quantity demanded based on a one percent price change holding other factors constant. For the restaurant situated close to the college, the price elasticity of demand for local residents is lower compared to that of college students who are in session for about nine months every year. In this case, for the firm to raise its revenue, it needs to devise pricing strategies, which will help it raise revenues regardless of whether the price elasticity of demand for college students is higher (This Matter, 2015).