Answer to Question #92177 in Microeconomics for arab

Question

If drug cost $600 with its pain reduction unit of 30 units and its ICER of drug with doing nothing is 20. However, the patient wants to pay $10 per pain reduction unit. Will he buy the drug. Why, why not?

Answer 1

Cost of drug = $600

pain reduction unit of 30 units

ICER of drug with doing nothing is 20

the patient wants to pay $10 per pain reduction unit

The patient will buy the drug because he will be able to get the drug at a lower cost of = 10 $\times$ 30= $300

He will buy at $300 less the original price.