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The state places a very low price for the sale of an essential medicine, which is lower than the price of the imported ingredients used to make that medicine. What, according to the author, would be the effect of setting such a low price? 
A

The low price would result in people thinking the medicine is not good, and they would not use it.


B

Companies supplying the ingredients for the medicine would lower the prices of their products.


C

People would buy more health insurance policies, so that they do not have to pay for essential medicines.


D

The low price would restrict the availability of the medicine in the market, since pharmaceutical companies may not want to manufacture or import the medicine and sell it at that price.

Approved answer
Correct option is D)

The correct answer is (d) – the low price would restrict the availability of the medicine in the market, since pharmaceutical companies may not want to manufacture or import the medicine and sell it at that price. This option is supported by the first paragraph, which describes how pharmaceutical companies have pointed out that the increasing costs of imports have made the manufacture of certain drugs unviable, since ingredients are usually imported. The author does not discuss the pricing policies of the manufacturers of ingredients of medicines, and so, option (b) cannot be correct. Neither is there any information in the passage to support option (c) as the correct answer.

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Best answer

The state places a very low price for the sale of an essential medicine, which is lower than the price of the imported ingredients used to make that medicine. What, according to the author, would be the effect of setting such a low price? 
A

The low price would result in people thinking the medicine is not good, and they would not use it.


B

Companies supplying the ingredients for the medicine would lower the prices of their products.


C

People would buy more health insurance policies, so that they do not have to pay for essential medicines.


D

The low price would restrict the availability of the medicine in the market, since pharmaceutical companies may not want to manufacture or import the medicine and sell it at that price.

Approved answer
Correct option is D)

The correct answer is (d) – the low price would restrict the availability of the medicine in the market, since pharmaceutical companies may not want to manufacture or import the medicine and sell it at that price. This option is supported by the first paragraph, which describes how pharmaceutical companies have pointed out that the increasing costs of imports have made the manufacture of certain drugs unviable, since ingredients are usually imported. The author does not discuss the pricing policies of the manufacturers of ingredients of medicines, and so, option (b) cannot be correct. Neither is there any information in the passage to support option (c) as the correct answer.

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