Studies have fixed the short-run price elasticity of demand for HPV vaccines at -0.25 . Suppose that transportation issues lead to a sudden cutoff of vaccine supplies. As a result, supplies of HPV vaccines drop 20 percent. a. If HPV vaccines were selling for 130 dollar per dose before the cutoff, how much of a price increase would you expect to see in the coming months? b. Suppose that the government imposes a price ceiling on HPV vaccines at 130 dollar per dose. How would the relationship between vaccine recipients and hospital/clinic owners change?
Studies have fixed the short-run price elasticity of demand for HPV vaccines at -0.25 . Suppose that transportation issues lead to a sudden cutoff of vaccine supplies. As a result, supplies of HPV vaccines drop 20 percent. a. If HPV vaccines were selling for 130 dollar per dose before the cutoff, how much of a price increase would you expect to see in the coming months? b. Suppose that the government imposes a price ceiling on HPV vaccines at 130 dollar per dose. How would the relationship between vaccine recipients and hospital/clinic owners change?
Chapter6: Elasticity
Section: Chapter Questions
Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...
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Studies have fixed the short-run
a. If HPV vaccines were selling for 130 dollar per dose before the cutoff, how much of a price increase would you expect to see in the coming months?
b. Suppose that the government imposes a
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