Prices of pharmaceutical drugs remain controversial. The front page of Monday's WSJ, (Feb 27, 2017), carried a story about how the price increases in 2017 were slightly lower than in past years, but not for all drugs. The story describes how there was an outcry a fortnight ago when Marathon Pharmaceuticals LLC set an $89,000/ year starting price for a "decades-old muscular-dystrophy treatment that Americans could get from abroad for $1,600 a year or less until Marathon won U.S. approval to sell it." Use Propect Theory to describe this reaction to Marathon's drug pricing policy. Use a diagram. Label all axes and relevant points. What are the specific characteristics of Prospect Theory that are particularly relevant to a market where prices can change (upwards or downwards)? Beyond prospect theory, what are other ways in which prices affect consumers?