How will this new policy from Wal-Mart affect the demand for brand name drugs and will this policy affect total revenue? Consider the elasticity of demand for generic drugs. Wal-Mart claims up to a 70% savings for consumers on some drugs, so where does Wal-Mart benefit? What are some possible negative repercussions for such a policy?
Tuesday, September 26, 2006
Wal-Mart Cuts Generic Drug Prices
You may have seen this on the news last week, but Wal-Mart has just cut prices on some generic drugs to $4 for a 30-day supply. Here are some good questions posed by Sarah: