Asked by Nyiah Smith on Jul 06, 2024
Verified
Critics of the pharmaceutical industry often argue that price ceilings should be imposed on drug manufacturers.If this happened,the quality of drugs would improve.
Price Ceilings
A maximum price legally allowed for a product or service to safeguard the interests of consumers.
Pharmaceutical Industry
Refers to the sector of the economy that discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate symptoms.
Drug Manufacturers
Companies engaged in the production, marketing, and distribution of medications for health conditions.
- Pinpoint situations where price controls and quantity controls could cause inefficiencies in markets.
Verified Answer
TB
Taziana BluntJul 08, 2024
Final Answer :
False
Explanation :
Imposing price ceilings on drug manufacturers may lead to a decrease in their profits, which could impact their ability to invest in research and development, ultimately resulting in the quality of drugs being compromised.
Learning Objectives
- Pinpoint situations where price controls and quantity controls could cause inefficiencies in markets.