The managerial solution explains that when generic drugs enter the market after the patent on a brand-name drug expires, the demand curve facing the brand-name firm shifts toward the origin (to the left). it also becomes less elastic at the original price (and becomes steeper). the firm now maximizes its profit at a point where the quantity is smaller. however, the new profit-maximizing price may be higher than the initial price because the demand curve is less elastic at the new optimum. does the managerial solution change if the shift in the demand curve (that occurs due to the entry of the generic) is a parallel shift to the left (i. e. slope of the demand curve does not change). if entry produces a parallel shift left, then the brand-name firm a. will not charge a higher price because its demand curve does not become steeper. b. will not charge a higher price because its demand becomes more inelastic. c. will charge a higher price because demand has shifted leftward. d. may charge a higher price because its costs have not changed. e. may charge a higher price because the optimal quantity decreases.