7. First Come, First Served?The graph shows the downward-sloping demand for, and the upward-sloping supply of, flu jabs facing a clinic in a remote village. This clinic is the only place providing flu jabs to the residents of this village The equilibrium price is €per flu jab, and the equilibrium quantity isjabs per day.If the government imposes a maximum price of €14 per flu jab, there will beofjabs per day.At the price control of €14 per jab, the quantity supplied isper day. At this quantity, the maximum price the residents of this village arewilling to pay is €per jab.People will wait in line until the total cost of the flu jab (price for the jab plus waiting time) equals the maximum price they are willing to pay at thequantity supplied under the price control. On the graph, use the orange rectangle (square symbols) to shade the area representing the total value oftime wasted in line. The total value of time wasted in line is € 4036SupplyWasted Time Value32282420Controlled PriceDemand102030405060708090100QUANTITY (Jabs per day)The equilibrium price is €per flu jab, and the equilibrium quantity isjabs per day.If the government imposes a maximum price of €14 per flu jab, there will beof [jabs per day.At the price control of €14 per jab, the quantity supplied isper day. At this quantity, the maximum price the residents of this village arewilling to pay is €per jab.PRICE OF FLU JAB (Euros)

The equilibrium price is € per flu jab, and the equilibrium quantity is jabs per day. If the government imposes a maximum price of €14 per flu jab, there will be of jabs per day. At the price control of €14 per jab, the quantity supplied is per day. At this quantity, the maximum price the residents of this village are willing to pay is € per jab.

The equilibrium price is € per flu jab, and the equilibrium quantity is jabs per day. If the government imposes a maximum price of €14 per flu jab, there will be of jabs per day. At the price control of €14 per jab, the quantity supplied is per day. At this quantity, the maximum price the residents of this village are willing to pay is € per jab.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

9) In which of the following countries does health insurance not pay for most preventive care procedures? A) Canada B) Japan C) the United Kingdom D) the United States 10) Substantial co-payments are typically not required as a part of the health care system in A) Canada and the United Kingdom. B) Japan and Canada. C) the United States and Japan. D) Japan and the United Kingdom. 11) The largest government-run health care system in the world, with 1.7 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from A) tariffs. B) the World Health Organization. C) income taxes. D) private businesses. 12) Typically, the ________ in a country, the higher the level of spending per person on health care. A) higher the level of income per person B) larger the population C) higher the level of income taxes D) lower the median age of the population 13) In ________, health care spending per person…
16 Eradication of a disease with a vaccine subsidy. A terrible disease called fictitia is ravaging the woebegone nation of Pcoria. Fortunately, government scientists have just discovered the formula for an effective vaccine. Given current raw material prices, it costs $10 to produce each dose of vaccine. Assume that Pcoria has 100 citizens, and that the demand for vaccine in the first time period is Q=100 where P is vaccine price and y is disease prevalence. a Assume a competitive vaccine manufacturing market and a disease prevalence of 20% (y = 0.2). How many citizens demand the vaccine this period? b After this initial round of vaccinations, demand for the vaccine plummets because many citizens have been vaccinated and do not need another vaccine. Among the unvaccinated population, demand is now P Q= 50 – The fictitia outbreak has slowed down considerably but the prevalence is still ris- ing. Now assume y=0.25. How many unvaccinated citizens will demand vaccine this period? c The…
Which of the following reports has the primary purpose lo inform an insurance company about a prospect's previous medical insurance history? A.Medical Information Bureau (MIB) B,Attending physician's stalement C.Inspection report D.Producer's report
Price elasticities of the demand for health care are usually much lower (in absolute terms) at the individual provider level than at the aggregate level. a.True b.False
In some countries, such as Canada and UK, direct-to-consumer (DTC) advertising for pharmaceutical products is illegal or tightly controlled. Which of the following is NOT a reason why DTC is tightly controlled? DTC have the potential to drive up spending on drugs and exacerbate moral hazard. DTC makes patients aware of new remedies. DTC can put a strain on doctor-patient relationship when patients demand some drugs that are not necessary or not the best options. Asymmetric information: consumers are not in a good position to determine if a drug is what they need.
13. Using marginal cost pricing, you have set a price of $200. For the same service, you accept a Medicare payment of $175. You would not change what you charge other patients just because Medicare changed its payment. a. True b. False
Should there be one $/QALY for an entire country? How would you expect drug companies to react to price limits set by public programs?
What are three detailed reasons why healthcare has negative macroeconomic implications in the context of the ongoing COVID-19 pandemic?
In the days when the epidemic started, the price of the mask, which is normally $ 0.25 , has climbed up to $ 8 in the market. In this period, on average, a mask found buyers in the market for $ 4.Mask supply and demand functions:Qd = a - bPQs = -c + dPQd = QsLet's assume that it is. Here you can choose the numerical values of the a, b, c, d parameters to solve the problem. When making solutions, use them parametrically. a)Using the above information, plot the supply and demand functions for the mask market. Show consumer and producer surplus values on the chart. b)If the mask price is $ 6, write the consumer and producer residual value using the integral. (calculation is not required.) c)The Ministry of Health has announced the mask price as $ 1. According to this explanation, write the residual value of the producer and consumer using Integral. (calculation is not required)
Explain how each of these situations will affect the quantity demanded of health insurance: d) New technologies that enable medical illness to be predicted more accurately. e) A tendency among buyers to become less risk, on average.
Suppose we allocate a fixed budget for tuberculosis screening between two alternatives: screening the population generally, which has a marginal cost per test of MCG and a marginal benefit of MBG additional cases detected per test, and screening in homeless shelters, with a corresponding MCS and MBS. Assume it is currently true that MBG/MCG < MBS/MCS. Understanding that MB decreases (increases) as quantity increases (decreases) and the reverse is true for MC, we can conclude that: a. too much screening is being done at homeless shelters relative to general screening. b. too much general screening is being done relative to screening at homeless shelters. c. the price of screening in homeless shelters is too high. d. the allocation is already optimal if there is a fixed budget because we can’t equate the ratios of marginal benefit and marginal cost. e. we can only make the allocation optimal if the prices can be changed
Based on the data presented in the table below estimate elasticity of demand for two price changes: a) price increase from $3 to $9 per hour; and b) price decrease from $9 to $3 per hour. Make sure to use the midpoint formula. Price Per Hour of Therapy Demand for Therapy 0 16 1 15 2 14 3 13 4 12 5 11 6 10 7 9 8 8 9 7 10 6 11 5 12 4 13 3 14 2 15 1 16 0