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1'. ['10 points) Many people consider the price of prescription drugs to be too high. For example, a survey by the independent Kaiser Family Foundation

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1'. ['10 points) Many people consider the price of prescription drugs to be "too high." For example, a survey by the independent Kaiser Family Foundation found that one fourth of all American families did not ll a prescription for medicine because the price was too high. Based on this and other evidence, the United States Congress last week began investigations on the high price of prescription drugs in the U5. The purpose of the hearings is to determine what Congress can do about the high prices of prescription drugs. One suggestion is to provide nancial assistance to patients. The financial assistance would take the form of a voucher - the government would provide patients with vouchers which they could use to pay for prescription drugs; pharmacies would then turn the vouchers into the government to receive cash. The vouchers would act as an increase in income for consumers that could only be used to purchase prescription drugs. Explain the effect of vouchers for prescription drugs on the equilibrium price and quantity of prescription drugs. Will vouchers succeed in making prescription drugs more affordable? Be sure to expiain your answer completely

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