Abuse of Market Power-Free-Samples for Students-Myassignmenthelp

Question: Choose a Microeconomics topic that interests you. It could be a particular consumer trend like the explosion of demand for IPADS, the rising costs of Oil Products and how they impact demand, or the supply of healthcare services, etc. Answer: The High Price of Essential Drugs in Canada and its Impact on Health The article Terence Corcoran: If you like Canada's liquor, transit and electricity monopolies, you'll love the medicine cartel by Corcoran (2017) tells us that the price of essential drugs is very high and that drugs suppliers have market powers of which they have been noted to abuse. The article also notes that completion in this market is lower and if it was increased, the problem will be narrowed. The article finally suggest the importance of government intervention in this market to help in lowering prices for essential drugs. The second article The serious flaw in Canada's healthcare system: prescription drugs aren't free by Kassam (2017) tells us of the importance of medical care in Canada and the lack of universal coverage in the Canadian medical care. The article noted that some people take pills every day or after days or even a week and are greatly constrained by the high drug costs. Some people skip doctors prescriptions to avoid high costs. Analysis The prices of essential drugs in Canada is very high. This is resulting in a reduction in the living standards for most people especially those that are in the low income bracket. Given that drugs are important in restoring the health status of the sick people of which is untimely and unavoidable, drugs can therefore be considered to be a necessity. Thus, patients are forced to purchase the drugs at the prices offered in the market. The price elasticity of demand for drugs is inelastic and thus demand is not affected by the price changes. There are many hospitals in Canada both public and private; in addition, there are many pharmaceuticals selling drugs in all parts of the country. The players in the drugs market are not in a competitive market given the fact that there is patents for drugs that prevents entrance in this market. Some drugs providers operates in monopoly and oligopolistic markets. This clearly means that drug prices are not given as an interaction of demand and suppl y forces as is the case for competitive markets. Rather, the prices are set by the players who possess market powers over the same. Many people die every year in Canada from lack of proper health services because they have become expensive and unaffordable for many. The players are in constant abuse of market power and are hiking their prices. These players have various arguments to justify their increased costs of producing the drugs such as the testing costs. This calls for government intervention in the provision of health services. Conclusion The price for drugs needed for the treatment of common diseases should be maintained at a lower level to increase the affordability to many citizens and thus lower the health costs. Due to the high costs of imperative drugs, some people are overlooking the consumption of drugs and thus they suffer for long with diseases which at extreme case results in death. Most families are struggling in poverty due to health costs. The government should come up with a good strategy to control the negative externalities in the drugs market. References Corcoran, T. (2017). Terence Corcoran: If you like Canadas liquor, transit and electricity monopolies, youll love the medicine cartel. Financial Post. Retrieved 19 November 2017, from https://business.financialpost.com/opinion/terence-corcoran-if-you-like-canadas-liquor-transit-and-electricity-monopolies-youll-love-the-medicine-cartel. Kassam, A. (2017). The serious flaw in Canada's healthcare system: prescription drugs aren't free. The Guardian. Retrieved 19 November 2017, from https://www.theguardian.com/world/2017/oct/20/canada-national-pharmacare-prescription-drugs.