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Drug prices are rising to the point of unaffordability. Is it possible for prices to exceed...

Drug prices are rising to the point of unaffordability. Is it possible for prices to exceed what consumers will pay? Provide an explanation that includes descriptions of the Theory of Demand, Theory of Supply, and Equilibrium. Would restricting the price that drug makers can charge make these medications more affordable and easier to obtain for people? Explain with the aid of a properly labeled Supply and Demand curve.

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The theory of demand states that as quantity demanded and price are inversely related and theory of supply states that price and quantity supplied are directly related.The equilibrium is struck when supply and demand are equal.Pe is the equilibrium price.The maximum price that the consumers are willing to pay is Pm.If price rises beyond Pm,the demand would be negative which is not possible.

Yes,restricting the price below the equilibrium price Pe would make medications more affordable and easier to obtain.

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