Tuesday, September 22, 2015

Is this an example of a market answering well the 3 fundamental economic questions??

From TheSkimm

"WHAT TO SAY WHEN THERE'S SURGE PRICING…

"That's not ideal. Yesterday, a drug called Daraprim jumped in cost from $13.50 to $750 a pill overnight. The drug – which treats a rare infection but can also be used as part of cancer and HIV treatment – was recently bought by a company called Turing Pharmaceuticals. The drug's more than 60 years old, but Turing decided it wanted to make a big profit off of it (insert 5,000% price increase here). The move has doctors, patients, and even Hillz up in arms. "
An economist might ask, "Who is paying the $750?"

Here is a follow-up: http://money.cnn.com/2015/09/22/investing/daraprim-aids-drug-price/.

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