This is the Problem exactly as my Instructor has posed it - please note that there is no price or QTY given, we are supposed to use hypothetical numbers and answer the questions from the "article" with just the information given. Senate and House Committees Set Sights on Big PharmaNew York Times, January 29, 2017Buckle up Big Pharma, it's going to be a bumpy ride in Congress this year. Senate and House Committee Chairs will gavel in the first of a series of hearings on soaring drug prices. “ Both chambers are expected to re-introduce bi-partisan legislation to stymie so-called pay-for-delay tactics drug-makers use to slow the introduction of generics. The proposed legislation is also expected to allow the importation of prescription drugs from approved Canadian pharmacies. (A) Below construct a market for name-brand prescription drugs as of 2017 labeling supply and demand with the subscript “17” and note the equilibrium price and quantity. Assume that the demand for prescription drugs is highly inelastic while supply has some elasticity. (B) Below, write a phrase from the article that speaks to changes in the market price for prescription drugs. (C) Proposed legislation plans to stymie delay tactics on the introduction of generic drugs. Assume Congress ends delay tactics by drug-makers on the introduction of generic drugs. Return to the market in (A) and shift supply and or demand given this government policy change. (D) Below, give economic justification for your change(s) in the market. (E) Using economic theory, argue in less than 30 words whether the proposed legislation is a credible approach to lowering prescription drug prices.
This is the Problem exactly as my Instructor has posed it - please note that there is no price or QTY given, we are supposed to use hypothetical numbers and answer the questions from the "article" with just the information given.
Senate and House Committees Set Sights on Big Pharma
New York Times, January 29, 2017
Buckle up Big Pharma, it's going to be a bumpy ride in Congress this year. Senate and House Committee Chairs will gavel in the first of a series of hearings on soaring drug prices. “ Both chambers are expected to re-introduce bi-partisan legislation to stymie so-called pay-for-delay tactics drug-makers use to slow the introduction of generics. The proposed legislation is also expected to allow the importation of prescription drugs from approved Canadian pharmacies.
(A) Below construct a market for name-brand prescription drugs as of 2017 labeling
(B) Below, write a phrase from the article that speaks to changes in the market price for prescription drugs.
(C) Proposed legislation plans to stymie delay tactics on the introduction of generic drugs. Assume Congress ends delay tactics by drug-makers on the introduction of generic drugs. Return to the market in (A) and shift supply and or demand given this government policy change.
(D) Below, give economic justification for your change(s) in the market.
(E) Using economic theory, argue in less than 30 words whether the proposed legislation is a credible approach to lowering prescription drug prices.
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