Demand for pharmaceuticals is unique because it is determined by four parties: the patient, who is the direct consumer of drugs; the physician, often serving as the consumer’s agent, who considers drugs as an input in the production of health for the patient; insurers, who usually pay most of the cost of the drug that is purchased; and the pharmacist, who often decides which version of a drug to dispense, fills the prescription, and frequently provides the patient with health counseling and additional information on the drug’s action, administration, and side effects. This chapter looks at each party and their interaction in the determination of pharmaceutical demand in a rapidly changing environment in the United States.