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Homework Questions Help

#6
Critically analyze the pros and cons of putting a
price ceiling on prescription medicine. Make sure to use concepts 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
company s production decisions? What about its decisions to conduct
further research into new drugs?

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