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BU/224 BU224 BU 224 UNIT 6 DISCUSSION

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BU 224 UNIT 6 DISCUSSION Unit 6: Unit 6: Governmental Price Controls – Discussion 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. a. In the first case, assume the medication is for a life threatening illness for which your child has been diagnosed. b. In a second case, assume the medication is for an improved quality of life issue, such as achieving a healthy weight. c. What are the impacts that the pharmaceutical company that makes the medications in question will experience? How will that affect the pharmaceutical company’s production decisions? What about its decisions to conduct further research into new drugs?

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