Pharmaceutical Prices Review | Instant Homework Solutions

Author: Client Uploads

June 6th, 2021

Please listen to the following EconTalk podcast in its entirety: Craft a discussion post in which you answer the following: 1. The host (Roberts) and the guest (Rajkumar) agree that the current prices of cancer drugs are not reflective of a ‘market price.’ Why not? What are the main factors that influence the prices of cancer drugs (and other pharmaceuticals) in the U.S.? 2. To what extent is the demand for this type of product characterized by ‘bounded rationality’ and cognitive biases? Is this an example where the ultimate consumer, the patient, is not the best judge of need or value? Why or why not? 3. Which of Rajkumar’s reform proposals do you find to be the most compelling? Which are the least persuasive? Explain. 4. This podcast might be summarized by the maxim, “governments are notorious for simultaneously subsidizing demand and restricting supply – a recipe guaranteed to raise prices.” Where else do you observe this pattern?

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