The "you can't take it with you" and "other people's money" effects give rise to an inelastic demand for pharmaceutical drugs.

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The "you can't take it with you" effect refers to the idea that people are willing to spend money on health care products, including pharmaceutical drugs, because they cannot take their wealth with them after death. The "other people's money" effect refers to the fact that insurance coverage or government funding allows individuals to use other people's money to pay for drugs or health care services, leading to higher demand. Both of these effects contribute to an inelastic demand for pharmaceutical drugs.

The "You Can't Take It with You" and "Other People's