4 ms·
>Worst case the price going up means they take less, which seems like a somewhat positive outcome. That's already addressed by demand inelasticity. When price
by starfallg 6y ago
>Worst case the price going up means they take less, which seems like a somewhat positive outcome.
That's already addressed by demand inelasticity. When price rises, the quantity demanded falls at a much lower rate. It's the same demand curve we see for healthcare. In a scenario where there is ample competition, the price equilibrium is not as skewed, but when supply is severely limited or suppliers collude, the price equilibrium inflates needlessly, which is exactly what we see in both controlled substances and healthcare.