How does demand impact other policy-holders

Assignment Help Microeconomics

Reference no: EM13214241

As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of some of these drugs is uncertain and some are not curative. For example, Genentech's drug Avastin is not marketed as a life-saving drug, but as a life-extending drug and is estimated to cost as much as $100,000 per year. Research Avastin on the web, and address the following: Who (free market, insurers, Government, drug companies) should determine how demand is met? Use economic theory to support your claim. Do you believe that the government has an obligation to set guidelines for who receive these drugs? If so, what should those guidelines be? Should the insurance industry be obligated to pay for Avastin treatments and if so, how does this impact other policy-holders? Why or why not?

Reference no: EM13214241

Questions Cloud

How large will lilianas account balance be : Liliana Alvarez's employer offers its workers a two-month paid sabbatical every seven years. Liliana who just started working for the firm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000.

Describe how the designed sensing strategy functions : Explain how the designed sensing strategy functions. Point form answers are acceptable, feel free to use a diagram in your explanation.

What is the perfectly competitive equilibrium : Demand P (q)=100-2q Total Costs C(q)=10+20q . Calculate marginal cost for a firm in this industry. The marginal cost is graphed below, what is special or interesting about this marginal cost function. Verify the monopolist equilibrium is (Q=20,P=6..

Explain what state is being described in each case : What state is being described in each case? Type either s for solid, l for liquid (make sure you type an l and not an i), and g for gas (assume ideal). If the statement applies to more than one state

How does demand impact other policy-holders : As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of so..

State the heat capacity of the calorimeter is insignificant : since the soulutions are dilute, assume that all the solutions have the same density and specific heat capacity of water. the heat capacity of the calorimeter is insignificant.

What is the unused lending capacity of the banking system : Assets Liabilities Total reserves $12 billion Transactions accounts $ 50 billion Loans $27 billion Securities $11 billion Total $50 billion Total $50 billion 22.3. If the required reserve ratio is 0.20, what is the unused lending capacity of the b..

Define what is the enthalpy of the reaction : What is the enthalpy of this reaction? Assume that no heat is lost to the surroundings or to the coffee cup itself and that the specific heat of the solution is the same as that of pure water.

Explain how consumers react to the lower price : After a holiday stores begin to offer temporary discounts for many goods. Can you explain why they offer the discounts What can we say is happening to the Demand or Supply curve for prices to come down What can we say about how consumers react t..

User Account

All Pages