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To: ari-freedom
Price affects supply if price falls below cost of production.

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.

57 posted on 02/26/2008 11:53:56 PM PST by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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To: ThePythonicCow

companies exist for profit. They want the same profit so if the price has to be low then they’ll sell less.
Now canadians may be willing to subsidize the cheaper drugs for canadians who need them with tax $. But to pay more taxes to support low drug prices for us? that system would break


63 posted on 02/27/2008 12:21:12 AM PST by ari-freedom
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