Event Type
Research Presentation
Location
Dana Science Building, 2nd floor
Start Date
25-4-2025 1:00 PM
End Date
25-4-2025 2:30 PM
Description
Under the direction of Dr. Pablo Hernandez
This research project examines the supply and demand dynamics of Ozempic, a diabetes medication that has seen a dramatic increase in demand due to its off-label use for weight loss. This study provides a real-world application of key economic principles, particularly the law of supply and demand, price elasticity, and market equilibrium. Ozempic’s demand has surged due to increased consumer interest, largely driven by social media and weight loss trends. However, supply has not kept pace with changes in demand resulting in shortages and rising prices. This imbalance illustrates how changes in demand influence market conditions. These conditions demonstrate concepts such as inelastic supply, price adjustments, and government intervention in markets. In the U.S., demand plays a particularly strong role in determining price because the pharmaceutical market operates with less price regulation than in other countries. Unlike nations with government-imposed price caps or negotiation systems, the U.S. allows companies to set prices based on market conditions. In contrast, countries like Canada or those in the European Union have introduced price controls that limit how much demand can drive up costs. By analyzing Ozempic through the lens of supply and demand, this research connects classroom economic theories to real-world market behavior, showing how fundamental economic principles shape industries and consumer access to goods, particularly in the uniquely structured U.S. pharmaceutical market.
The Supply and Demand of Ozempic in America: An Economic Analysis
Dana Science Building, 2nd floor
Under the direction of Dr. Pablo Hernandez
This research project examines the supply and demand dynamics of Ozempic, a diabetes medication that has seen a dramatic increase in demand due to its off-label use for weight loss. This study provides a real-world application of key economic principles, particularly the law of supply and demand, price elasticity, and market equilibrium. Ozempic’s demand has surged due to increased consumer interest, largely driven by social media and weight loss trends. However, supply has not kept pace with changes in demand resulting in shortages and rising prices. This imbalance illustrates how changes in demand influence market conditions. These conditions demonstrate concepts such as inelastic supply, price adjustments, and government intervention in markets. In the U.S., demand plays a particularly strong role in determining price because the pharmaceutical market operates with less price regulation than in other countries. Unlike nations with government-imposed price caps or negotiation systems, the U.S. allows companies to set prices based on market conditions. In contrast, countries like Canada or those in the European Union have introduced price controls that limit how much demand can drive up costs. By analyzing Ozempic through the lens of supply and demand, this research connects classroom economic theories to real-world market behavior, showing how fundamental economic principles shape industries and consumer access to goods, particularly in the uniquely structured U.S. pharmaceutical market.