Governmental Price-Cutting Policy and Expelling of Low Price Drugs from Market by High Price Drugs / 中国药房

ABSTRACT

OBJECTIVE:To put forward proposals for governments on how to properly regulate drug market.METHODS:The theory of price elasticity in economics was applied for the analysis.RESULTS & CONCLUSIONS:With the increasing of national income year by year,the cases for high price drugs to expel low price drugs has become increasingly common.The government policies should be based on the development of pharmaceutical industry,meanwhile government should take mild policy to ease the contradictions arose from the development.