Now analyze the impact of the outbreak of respiratory illnesses on the market for antibiotics. What health care experts are calling the “tripledemic” (Covid, flu, and RSV) has dramatically increased demand for antibiotics in the United States. Assume there are no changes to the supply of these drugs.On the same graph you produced in Question 1, graphically depict any changes affecting the market for antibiotics and any changes that impact the individual firm.Show the movements of the curves (if any) and the new Short Run Equilibrium (SRE).Indicate the new market equilibrium P1 and Q1, the optimal output of an individual firm representative of the other firms in the industry at this SRE (labeled as q1), and the individual firm’s profit π1, if any (shaded and clearly labeled).Reminder: be sure to label all relevant points and axes.

Market price is established by demand-supply interaction in a market. The relationship between…

Answered: Now analyze the impact of the outbreak…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Now analyze the impact of the outbreak of respiratory illnesses on the market for antibiotics. What health care experts are calling the “tripledemic” (Covid, flu, and RSV) has dramatically increased demand for antibiotics in the United States. Assume there are no changes to the supply of these drugs.

On the same graph you produced in Question 1, graphically depict any changes affecting the market for antibiotics and any changes that impact the individual firm.
Show the movements of the curves (if any) and the new Short Run Equilibrium (SRE).
Indicate the new market equilibrium P₁ and Q₁, the optimal output of an individual firm representative of the other firms in the industry at this SRE (labeled as q₁), and the individual firm’s profit π₁, if any (shaded and clearly labeled).
Reminder: be sure to label all relevant points and axes.

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