IB ECONOMICS - INTERNAL ASSESSMENT
FRONT COVER
“India introduces price controls for knee
Title of the article implants”
https://www.reuters.com/article/us-india-health-pric
Source of the article econtrol/india-introduces-price-controls-for-knee-im
plants-idUSKCN1AW1IX
Date the article was published August 16, 2017
Date the commentary was written March 7, 2019
Word count
720 words
(750 words maximum)
Section of the syllabus the article
Section 1: Microeconomics
relates to
, India introduces price controls for knee
implants
Connection to article:
This article is about setting a price ceiling on drugs and medical devices, specifically
on knee implants, to make them more affordable.
Introduction to theory:
Price control is a form of government intervention when the price of a good or
service is set lower or higher the equilibrium price, which often results in the creation
of shortages/ surpluses in the market (Blink, Dorton. 2012).
Maximum price control (price ceiling) is when a maximum price is set below the
equilibrium price, preventing producers from selling their product above it. This
measure is usually applied to merit goods, and one of the reasons for setting a
maximum price is to protect consumers (Blink, Dorton. 2012).
Analysis:
Maximum price was set on knee implants. The main reason is to make them cheaper
so more people in India can afford an operation if it’s necessary.
2
FRONT COVER
“India introduces price controls for knee
Title of the article implants”
https://www.reuters.com/article/us-india-health-pric
Source of the article econtrol/india-introduces-price-controls-for-knee-im
plants-idUSKCN1AW1IX
Date the article was published August 16, 2017
Date the commentary was written March 7, 2019
Word count
720 words
(750 words maximum)
Section of the syllabus the article
Section 1: Microeconomics
relates to
, India introduces price controls for knee
implants
Connection to article:
This article is about setting a price ceiling on drugs and medical devices, specifically
on knee implants, to make them more affordable.
Introduction to theory:
Price control is a form of government intervention when the price of a good or
service is set lower or higher the equilibrium price, which often results in the creation
of shortages/ surpluses in the market (Blink, Dorton. 2012).
Maximum price control (price ceiling) is when a maximum price is set below the
equilibrium price, preventing producers from selling their product above it. This
measure is usually applied to merit goods, and one of the reasons for setting a
maximum price is to protect consumers (Blink, Dorton. 2012).
Analysis:
Maximum price was set on knee implants. The main reason is to make them cheaper
so more people in India can afford an operation if it’s necessary.
2
