Elasticity Of Spark Therapeutics
Finding long-term drugs at low prices has been a dilemma for many individuals in the general population. However, these set prices—more often than not—are usually seen as obscene and unorthodox due to their low supply compared to such high demand, rendering a deficit in quantity demanded for a large number of consumers. As a conflict, contrary to what many would hope for, a vast number of drugs are not extensive which then cause the pricing methods to be rigorous. More importantly, several pricing methods were then implemented as a result of diligent regulation of prices such as: value-based pricing and government acquisition (Chen, 2017). Such a dilemma is that of Spark Therapeutics Inc. and Sofia Priebe, a 14 year old girl that has been diagnosed
…show more content…
98). In regards to the article from Bloomberg online business newspaper, elasticity becomes present when Spark Therapeutics Inc. is in a turmoil of pricing decisions as their product, prominently known to reduce the degeneration of cells around the eye, has no close replacement. As a consequence, the demand for this product is inelastic. Ergo, an increase in the price of this drug will result in only a small change in the quantity demanded. In the article, as they discussed the pricing methods, it relates to their understanding that they have good intentions at heart but do to the harshness of the market, they must set a price where profit must also be made. This form of dilemma comes into conflict when the CEO of Spark Therapeutics Inc. Jeff Marrazzo found it difficult to understand the ill intentions of incentives that exists when they want a profit. The very same article states that they want to be rewarded for the findings but do not entirely want people to become poor from one transaction which is not always easily obtainable for everyone. As revolutionary as it sounds, this finding will later help with myopia but might—exponentially—render the general population to use a vast amount of their earnings. The question of ethicality versus profitability is as staggering as the relationship between what is normal and abnormal. That is to say, profit made by a product and the elasticity of its demand in the general population is more than often relative to whomever is selling
98). In regards to the article from Bloomberg online business newspaper, elasticity becomes present when Spark Therapeutics Inc. is in a turmoil of pricing decisions as their product, prominently known to reduce the degeneration of cells around the eye, has no close replacement. As a consequence, the demand for this product is inelastic. Ergo, an increase in the price of this drug will result in only a small change in the quantity demanded. In the article, as they discussed the pricing methods, it relates to their understanding that they have good intentions at heart but do to the harshness of the market, they must set a price where profit must also be made. This form of dilemma comes into conflict when the CEO of Spark Therapeutics Inc. Jeff Marrazzo found it difficult to understand the ill intentions of incentives that exists when they want a profit. The very same article states that they want to be rewarded for the findings but do not entirely want people to become poor from one transaction which is not always easily obtainable for everyone. As revolutionary as it sounds, this finding will later help with myopia but might—exponentially—render the general population to use a vast amount of their earnings. The question of ethicality versus profitability is as staggering as the relationship between what is normal and abnormal. That is to say, profit made by a product and the elasticity of its demand in the general population is more than often relative to whomever is selling