Critically analyze the pros and cons of putting a price ceilingon prescription medicine. Make sure to use concepts from thechapter in this unit such as government intervention,inefficiencies, price elasticity, etc. in your answer.
- In the first case, assume the medication is for a lifethreatening illness for which your child has been diagnosed.
- In a second case, assume the medication is for an improvedquality of life issue, such as achieving a healthy weight.
- What are the impacts that the pharmaceutical company that makesthe medications in question will experience? How will that affectthe pharmaceutical company’s production decisions? What about itsdecisions to conduct further research into new drugs?
