Why Do Sellers Have Price Elasticity Or Optionality?

With prescription drugs, sellers sell for as much as they can sell and buyers buy for as cheap as they can they can (Barrueta, 112). Through this, ideally, buyers and sellers find a common ground where the result is hopefully beneficial for both sides; buyer and seller. Sellers have price elasticity, and price often depends on optionality vs indispensability. Optionality is the value the seller takes in having additional investments aka is it worth it for the seller to be making a certain investment or not and indispensability is the absolute necessity of the seller to make the investments aka can they afford neglecting certain investments (Barrueta, 113). Moreover, this is protected by law through patents and other market exclusivity so that one side can

The issue resolves in the idea that public and private coverage is now the predominant payer for drugs rather than the patients while selecting intermediaries or pharmacists are not typically price sensitive, in fact they are usually anti-price sensitive. Most controversies tend to veer towards the “managing” the problem of the cost by “calling for more clinical evidence, creating new regulations around how to manage care for patients, how to help patients with co-insurance costs, etc.” (Barrueta, 115) This problem cannot be solved by: withholding clinically appropriate treatments, more research, or eliminating cost sharing, the pricing of the drugs stands in the way of achieving the public health benefits that these drugs promise. Although this issue is not extremely divisive and there isn't as much protest in comparison to issues of human rights, discussion can still be fairly heated especially when people of opposing sides are on the same