In the context of drug demand, what does inelasticity imply for policy design?

• A. Demand is highly responsive to price, so any price increase eliminates use.
• B. Demand for many drugs is inelastic; price changes have limited impact on use; prevention and treatment often required in addition to regulation.
• C. Price controls will completely stop all drug production.
• D. Demand is perfectly elastic; price changes have huge impact.

Answer: (B)