Identify 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?

Q: ou own two massage parlours located in a big city, one of them in a central residential…

A: Lerner index states the relationship between price, marginal cost, and the price elasticity of…

Q: When the FDA lifted restrictions of TV advertisements for prescription medication in 1997, How has…

A: The objective of the question is to understand the impact of the FDA's decision to lift restrictions…

Q: At a price of $15 (the price at which the two demand curves intersect), the price elasticity of…

A: The price elasticity of demand is the ratio of the percentage change in quantity demanded to the…

Q: The elasticity of demand for physician visits was determined to be -0.2. The president of the local…

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Q: Why does taking a drug off a formulary increase the prices to the consumer?

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Q: A medical reported that the consumption of this product has many health benefits Describe how does…

A: As a medical reported that the consumption of this product has many health benefits, Describe how…

Q: Should price controls be imposed on life-saving drugs? Will consumers benefit or be harmed by this…

A: Life-saving drugs are the medicines and other required drugs to be used for treatment of different…

Q: What impact would child immuniation intervention have on demand and consumer behavior in the long…

A: The use of vaccines in preventing childhood from infectious diseases, known as child immunization…

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A: The prevention, diagnosis, care, alleviation, or prevention of diseases, sickness, injury, and other…

Q: Discuss the kind of pressure the Health Maintenance Organizations (HMO) exerted on the price of…

A: The health-care system that provides insurance and services to its members.  The traditional HMO is…

Q: Comment on the elasticity of demand for medicine

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Q: Identify the NonPrice determinants of supply in the dentistry field. (per factor)

A: The supply curve shows the direct relationship between two variables: price and quantity supplied.…

Q: The consumer demand equation for tissues is given by  q = 11,664 −216 p +p2,  where p is the price…

A: Given q = 11,664 −216 p +p2 To determine: Price elasticity of demand E at p =24

Q: Where is the bargaining power of consumers greater? 1) The auto industry 2) Pharmaceuticals…

A: Buyer Bargaining Power are the pressures that consumers can exert on businesses to get them to…

Q: Why does the US government feel that the use of illicit drugs such as cocaine and opium (morphine)…

A: The government uses fiscal policy to increase employment and investment by increasing the aggregate…

Q: Please answer the following questions thoroughly: Some argue that the price elasticity of demand…

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Q: Should there be one $/QALY for an entire country? How would you expect drug companies to react to…

A: There should be standard minimumprice for drugs.One dillar should be preferrable. Therefore it…

Q: rom 1000

A: Point elasticity is defined as the price elasticity of demand which is being at a specific point…

Q: Price controls decrease the innovation rate for drugs but make existing drugs more affordable. True…

A: In economics, price controls are government-imposed restrictions that ensure that goods and services…

Q: Last year in a particular market area it is found that 1000 people have their vision checked each…

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Q: The Tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses…

A: Health-care coverage Tucker is currently residing in the United States with his family. For his…

Q: Average visits per week equal 640 when the copayment is $40 and 360 when the copayment rises to $60.…

A: Given  When copayment is $40, then the average visits per week is equal to 640 When copayment is…

Q: Demand studies in health care have provided estimates of both income and price elasticity. Estimates…

A: Elasticity basically refers to the change of one variable in response to other variables. It can be…

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Q: What does price elasticity of demand mean for insurance companies and medical providers for making a…

A: Elasticity Elasticity is the % change in one variable associated with a 1% change in another.…

Q: Demand studies in health care have provided estimates of both income and price elasticity. Estimates…

A: The responsiveness of demand for an item or service to changes in income is measured by income…

Q: Should the FDA consider economic factors in new drug approvals?

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Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.