EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 4, Problem 1FCT
To determine
To State: The reasons due to which shortage of 300 drugs exist in the United States.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Should price controls be imposed on life-saving drugs? Will consumers benefit or be harmed by this type of regulation?
Why does taking a drug off a formulary increase the prices to the consumer?
Discuss the kind of pressure the Health
Maintenance Organizations (HMO) exerted on
the price of drugs.
Chapter 4 Solutions
EBK ECONOMICS TODAY
Ch. 4 - Prob. 4.1LOCh. 4 - Prob. 4.2LOCh. 4 - Prob. 4.3LOCh. 4 - Prob. 4.4LOCh. 4 - Prob. 4.5LOCh. 4 - Prob. aFCTCh. 4 - Prob. bFCTCh. 4 - Prob. cFCTCh. 4 - Prob. dFCTCh. 4 - Prob. eFCT
Ch. 4 - Prob. fFCTCh. 4 - Prob. 1CTQCh. 4 - Prob. 2CTQCh. 4 - Prob. 1FCTCh. 4 - Prob. 2FCTCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- In the United States, most hospitals are non-profit, while nearly all pharmaceutical companies are for profit. Can you offer an explanation based on the consumer shopping problem?arrow_forwardIdentify the initial equilibrium price and quantity of the drug per day. Suppose the government imposes a price control at $1.50 a dose. How many doses are purchased after the price control is imposed?arrow_forwardConsider the demand and supply for illicit drugs. Assume you have been appointed by the government to recommend on an optimal policy to tackle the problem. You are told that the price elasticity of demand (or own-price elasticity) is <1 (i.e., inelastic) and that the price elasticity of supply is >1 (i.e., elastic). Would you recommend the government intervene on the demand side or the supply side. Explain your answer. What sorts of policies would you recommend?arrow_forward
- Should there be one $/QALY for an entire country? How would you expect drug companies to react to price limits set by public programs?arrow_forwardExplain how the Orphan Drug Act would affect drug development. Can you think of any TRADEOFFS from the act?arrow_forwardPrice controls decrease the innovation rate for drugs but make existing drugs more affordable. True Falsearrow_forward
- Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0 and estimates of price elasticity typically range between −0.1 and −0.75 (with hospital services at the lower end and elective services at the upper end). What is the significance of these estimates to policy makers?arrow_forwardUse a graph to illustrate how the following changes would affect the demand curve for inpatient services at a hospital in a large city. a. Average real income in the community increases. b. A number of physicians in the area join together and open up a discount-price walk-in clinic; the cross-price elasticity of demand between physician services and inpatient hospital services is –0.50.arrow_forwardPrice control meansarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you