Insulin is an essential drug for Type 1 diabetics. Thedemand for insulinto treat Type 1 diabetes is usually viewed ashighlyinelastic. However,the insulin price has increased so dramatically over the last decade. A recent study by the Health Care Cost Institution (HCCI) shows insulin costs per patient with Type 1 diabetes have almost doubled from 2012 to 2016 (Source:https://www.healthcostinstitute.org).

Question:

Why does insulin cost so much to patients in the USA? Why is insulin, a widely sold drug, so incredibly expensive?Does understanding the relationship between theprice elasticity of demandfor insulinand its total expenditure help you understand what's behind the rising price of insulin and how diabetics struggle to afford life-saving medicine?