Critically analyze the cons and pros of putting a price ceiling on prescription medicine. Make sure to use concepts from both chapters seen this unit such as inefficiencies, government intervention, price elasticity, etc. in your answer.
First case, suppose the medication is for a life threatening illness for which your child has been diagnosed.
Second case; suppose the medication is for an improved the quality of life issue, such as achieving a healthy weight.
Determine the impacts that the pharmaceutical company that makes the medications in question will experience? Discuss how will that affect the pharmaceutical company's production decisions? What about its decisions to conduct further research into new drugs?