The price elastically of demand for life-saving drugs is inelastic. As a result, manufacture have the freedom to fix higher prices for them. How can this problem be handled?

The price elastically of demand for life-saving drugs is inelastic. As

1.	The price elastically of demand for life-saving drugs is inelastic. As a result, manufacture have the freedom to fix higher prices for them. How can this problem be handled?
Answer» Solution :This problem can be handled through government INTERVENTION. (i) The government needs to control the prices of life-saving drugs. "The Essential Commodities Act, 1955" AIMS to ENSURE EQUITABLE distribution of essential commodities at reasonable price. (ii) The government can also provide subsidy to firms so that they may CHARGE less price for such items.