Answer to Question #127173 in Microeconomics for Oumou Diallo

Question

Drug prices in the U.S. is significantly higher than in other countries. For comparison between the U.S. and other countries, what do you think are the key factors that lead the American's to purchases more drugs than the other countries.

Answer 1

Country population and volume of drugs consumed,

The population of the U.S is very high hence they require large volume of drugs for their citizens.

Drug utilization per person,

Most of the citizens in the U.S consume prescribed drugs, this is clearly shown by the drugs individuals consume.

Type and mix of drugs consumed (e.g., generics)

Generic drugs meet the stringent performance and bioequivalence standards set by the U.S federal government hence most of the citizens will tend to consume the generic drugs.