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The Popular Diet Drug Redux Was Removed from the Market

Question 136

Essay

The popular diet drug Redux was removed from the market in August 1997, after a Mayo Clinic report linked the drug to heart valve damage.
a. Explain the effect of this action on membership at Gold's Gym, on enrollment at diet centers such as Weight Watchers, where clients learn to lose weight by exercising and eating right, and on sales of treadmills and exercise bikes.
b. Would you expect people to switch to other diet drugs now that Redux has been banned? How would you explain the fact that sales of the most popular, and still legal, diet drug phentermine have plummeted since the Mayo clinic report was released?

Correct Answer:

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a. It should increase demand for members...

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