Question

In: Economics

a) Why does TRUVADA cost $1,780 in the United States whereas it's just $8 in Australia?

a) Why does TRUVADA cost $1,780 in the United States whereas it's just $8 in Australia?
b) Can you provide other examples of price discrimination?

Solutions

Expert Solution

(a) The reason for the difference is price of this drug in US and Australia is the patent protection of the drug in US, where the drug is generic is all other countries.
(b) Another example of price discrimination is Apple iphones, it cost $1000 for the lastest iphone 12pro in US but cost ₹119000 ( $1400) in India due to taxes and import fees.

Rahul Sunny answered 2 years ago
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