I
need a DISCUSSION tonight
Critically analyze the pros and cons of putting a price
ceiling on prescription medicine. Make sure to use concepts from both chapters
seen this unit such as government intervention, inefficiencies, price
elasticity, etc., in your answer.
I
need a response for the following
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There are both pros and cons of
using a price ceiling. Price ceilings are usually used in a time of
depression, war, or bad economic downfall. They are used to ensure
that the majority of the people still have means to afford products and to ensure
that only a select few get rich off of those products by raising prices.
There are a few cons to price ceilings however, and they are that it
creates inefficiency, enables the emergence of black market deals, and
makes a constant shortage of the product. There are still a few price
ceilings though because the government doesn't always understand the supply
and demand curves and schedules before they make a price ceiling that would
affect the consumers and sellers.
I need a response for the following
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The pros and cons of putting a
price ceiling on prescription medicine are as follows. When the
government steps in to put price ceilings in place it can be good or
bad. This usually happens when the economy is bad, something tragic
has happened to cause prices to sky rocket etc. So if they put a price
ceiling on prescription medicines during these types of events then this
would allow the consumers to afford medicines, but the bad thing about this
is there becomes a shortage of prescription medicines. When the
economy starts to recoup or the tragic incidents have been resolved then
the government lifts the price ceiling which allows the supplier to
determine the price of their goods. Sometimes the government needs to
intervene during bad times because suppliers hike prices during the times
so the government steps in to stop this from happening.
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