Report On The Gym Group

Many countries such as Canada, India, and the UK have price controls. The governments of these countries impose regulations that control the prices of new drugs as well as generics without compromising safety but at the same time they do not burden pharmaceutical companies

Elasticity of demand is the relationship between the demands for a product with respect to its price. Generally, when the demand for a product is high, the price of the product decreases. When demand decreases, prices tend to climb. Products that exhibit the characteristics of elasticity of demand are usually cars, appliances and other luxury items. Items such as clothing, medicine and food are considered to be necessities. Essential items usually possess inelasticity of demand. When this occurs prices do not change significantly.

market, there is price competition. This can lead to price wars and, therefore, lower prices for

Prescription drug prices are on the rise in the United States. Currently, the United States does not implement a price control on prescription drugs. Every day the supply and demand for prescription drugs fluctuates. Pharmaceutical companies produce drugs that are necessary for survival. Therefore, it is necessary for research and development to continue in the United States. Those suffering the effects of exorbitant prices must do so until a generic form of a prescription drug is produced. Once approved by the FDA, new drugs will make their appearance on the market and patients will no longer suffer financially. Until then, it is necessary for pharmaceutical companies to price their drugs based on the idea of supply and demand. This produces the profit used to fund research. Price controls discourage innovation. If a price control were set in place, of course the price of prescription drugs would decrease. However, the development of new drugs decreases with it. Today’s generation would benefit from lower prices, while future generations would suffer from the loss of drug innovation.

The Law of Demand states that as the price increases, then the demand will decrease, and vice versa. In the article, the demand for turkeys increases during Thanksgiving, while the price drops. The change in demand is due to the increase in preferences for turkeys. During the holiday season, people prefer to eat turkey at the dinner table with family, so the demand for turkeys will increase. The Law of Supply states that as the quantity supplied increases, the price should increase, and vice versa. This is opposite in respect to turkeys as the quantity supplied increases as the price decreases. This is because the supplier’s want to attract the customers to buy their product and not their competitors. Inelastic supply is when the quantity supplied remains constant as price changes. This relates to the roses and fresh turkey, as there is a limited supply of these products, so the price will change but the supply will stay

This question has many caveats that can determine an answer either way dependent on one’s perspective from either a professional lens or as an information seekers perspective lens, or the average person thinks this could be me maybe I need this? This question is subjective in many ways. As Gregory and Slovic states, for some people the question about prescription drugs rarely arises, however, for to others that face serious health problems this question may arise weekly, or monthly, and the conversation leads to decisions that have weighty effects on the quality and duration of their lives (p.,347). We need to see things form every point of view which makes me believe that it really depends on the patient /consumers point in their lives

Competition within the industry as well as market supply and demand conditions set the price of products sold.

* Monopoly Power. Pharmacists often face questions from patients regarding how prices of medications are determined and why, in some cases, they are so expensive. Unlike markets for other goods, in the pharmaceutical marketplace there are a limited number of manufacturers and the medication being sold are not identical, but rather are differentiated. There is a guarantee via patent protection that no potential competitor may manufacture an identical drug and sell it at a lower price in the short run. As a result, the branded manufacturer is able to make profits. Since there is only one seller, the monopolist determines the price of the medicine. This establishes the monopolist as a price setter, permitting prices above the perfectly competitive price by controlling the quantity of medication produced in the marketplace. This is in stark contrast to being a price taker, and accepting a price established within a perfectly competitive marketplace. The end result is that prices are higher under these market conditions than they would be in a purely competitive marketplace.

Elasticity : rising or falling price lead changes in quantity of demand, and the quantity of supply and this so-called elasticity

The law of demand states that, holding all else constant: A. B. C. D. as price falls, demand will fall also. as

The principles of supply and demand pertain to any economic policy, and the generic drug sector of the healthcare industry is no different. The alignment, however, is an anomaly to schools of thought that we are accustomed to.

The imbalance in a patient's brain created by these medicines, rather than scaring them away from doctors tends to brings them even closer. The patient will experience more and or different problems, leading to more prescriptions, and more money being put into insurance and pharmaceutical companies pockets.

Competition within the industry as well as market supply and demand conditions set the price of products sold.

* Competitive Pricing – Merck is sometimes forced to lower prices of products, either ones that have gone off patent to maintain market share in the product, as well as for products that are still on patent in order to compete with rival products for the same treatment that are marketed by competitors

Competition-based pricing is setting a price in comparison with competitors. Surely a firm has three options and these are to price lower, price to same or price higher. For example: Dove Damage Therapy Shampoo (700 ml) cost $11.70 versus Pantene Shampoo (700ml) cost $10.90 in FairPrice.