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1) Read at least three articles. Provide copies of the articles with your assignment if they are different than the articles I provide. You may use the business database for your search. Make sure it is grammatically correct and a minimum full page typed.
2) Look up and understand the definition of prices. Understand how prices move to equate supply and demand in a capitalist economy. Look up and understand the definition of government price controls.
3) Review at least two historical experiences with price controls. (gasoline in the 70s, rent controls from WWII to date, beef controls after WWII, Russia’s price controls, Cuba’s price controls, Venezuela’s price controls, etc.)
4) Write your opinion of the current Drug Shortage situation in the U.S. Cover issues such as: •Do you support government price controls? •Do you think government price controls affect a drug company’s balance sheet, contribution margin, profitability and liquidity? •What are the economic effects of government determined pricing rather than a market determined price? •Is there an effect on supply, demand or manufacturing capacity of affected drugs (manufactured goods)? •What “unforeseen” consequences do you anticipate? •Historically have price controls achieved their desired outcomes? •What would you suggest to help the current situation? •If you want to relate the issue to the lack of Ebola vaccination (or Zika)/treatment options, feel free.
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