This paper analyzes the placebo effect and response on people with anxiety and depression. It explores the use of placebo pills in case of anxiety and depression patient along with supportive care in comparison to anti-depressant and supportive care. The study is based on the fact that anti-depressant medicines help the patient’s brain to produce the chemical substance serotonin which induces a calming effect in the person. The use of placebo has been shown to be dependent on the information which are provided to the patients.