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Sterile Needles Case Study

Satisfactory Essays

I believe they should hand out free needles. We would first need to see what the demand for needles are. If the sterile needles are high in demand the better chance it increases the quantity and will not decrease in price. As sterile needles quantity increases, diseases like HIV/AIDS will likely lower. The demands for drugs are different. As drugs and sterile needles are complements, sterile needles prices will fall while the drug demand will increase. This indicates that the cross-price elasticity of demand of drugs and sterile needles will be negative. The cross-price elasticity of demand will be closer to zero for drug and sterile needles. Then the demand for drugs of sterile needles will be less and priced at a low rate. This means that

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