because if the price is artificially low, supply doesn’t meet demand. please see
http://www.capmag.com/article.asp?ID=1684
That's entirely out of the equation here. The actual cost of production of the major drugs is a small fraction of even the artificially set price caps.
The question is how much profit the drug companies have left, from the sales of current drugs, to either (1) invest in research for future drugs (as the conservative claim) or (2) line the pockets of filthy rich drug company executives (as the liberals claim.)
The price is already cappped in Canada, and elsewhere, and so long as the supply is not rationed, in some effort to throttle the costs of nationally funded single payer drug benefits, there is no shortage.
Why are drugs so cheap in Mexico? I was just down there with a group of friends and they always go to Walmart to stock up. One girl bought 4 inhalers and saved $700. Not everything is that dramatic but everything is cheaper.
Remember the flu shot shortage a few years ago? Thank Hillary. It was her brain child to have the government buy up the vaccine forcing sales at greatly reduced rates. Price went too low so most of the manufacturers stopped making flu vaccine.