Answered: How would each event affect the market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded? Is the change positive or negative? Or does the event cause a change in supply or a change in the quantity supplied? Is the change positive or negative? Explain the mechanism for the change and what happens to equilibrium price and quantity.

a) The vaccine is approved for children under the age of 12.

b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone.

c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use.

d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad.

e) School districts and health care facilities add a requirement for getting the vaccine for all employees.

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