Macroeconomics 8th Edition by David Colander

Exercise 12

In Japan, doctors prescribe drugs and supply the drugs to the patient, receiving a 25 percent markup. In the United States, doctors prescribe drugs, but, generally, they do not sell them.
a.Which country prescribes the most drugs? Why?
b.How would a plan to limit the price of old drugs, but not new drugs to allow for innovation , likely affect the drug industry?
c.How might a drug company in me United States encourage a doctor in the United States, where doctors receive nothing for drugs, to prescribe more drugs?