Drug Prices Keep Rising Despite Intense Criticism
The article describes the frequent increase in price by the drug manufacturers. Most of these drugs are life saving and specialty drugs for serious illnesses and thus are highly inelastic in nature. The drug manufacturers protected by patents and research behave like monopolies and resort to frequent price increase for the drugs.
Topics include Price Elasticity of Demand(PED), Inelastic demand, Monopoly, Oligopoly. Explain the price increase using the drug market , Monopoly and Oligopoly diagrams.
Evaluation will cover impact of high drug prices on Consumers (patients/families), Society (doctors, medical system, tax payers), Government and Producers (drug manufacturers) in short term and long term.