Solution-How much vaccine will be in stock in the city by

How much vaccine will be in stock in the city by the end of

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The mayor of Gotham City, worried about a potential epidemic of deadly influenza this winter, asks an economic adviser the following series of questions. Determine whether a question requires the economic adviser to make a positive assessment or a normative assessment.

a. How much vaccine will be in stock in the city by the end of November?

b. If we offer to pay 10% more per dose to the pharmaceutical companies providing the vaccines, will they provide additional doses?

c. If there is a shortage of vaccine in the city, whom should we vaccinate first—the elderly or the very young? (Assume that a person from one group has an equal likelihood of dying from influenza as a person from the other group.)

d. If the city charges $25 per shot, how many people will pay?

e. If the city charges $25 per shot, it will make a profit of $10 per shot, money that can go to pay for inoculating poor people. Should the city engage in such a scheme?

Reference no: EM13320913

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How much vaccine will be in stock in the city by the end of

Reference no: EM13320913

Reference no: EM13320913

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