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Topic: Prescription Medications
Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter in this unit such as government intervention, inefficiencies, price elasticity, etc. in your answer.
- In the first case, assume the medication is for a life threatening illness for which your child has been diagnosed.
- In a second case, assume the medication is for an improved quality of life issue, such as achieving a healthy weight.
- What are the impacts that the pharmaceutical company that makes the medications in question will experience? How will that affect the pharmaceutical companyâ€™s production decisions? What about its decisions to conduct further research into new drugs?