New screening methods adopted price do you exect prevail, Macroeconomics

Assignment Help:

You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract HIV each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine different tests, existing screening methods can detect only the antibodies produced by the body's immune system - not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood, newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily, researchers have developed a series of new tests aimed at detecting and removing infections from donated blood before it is used in transfusions. The obvious benefit of these tests is the reduced incidence of infection through blood transfusions. The report indicates that the current price of decontaminated blood is $60 per pint. However, if the new screening methods are adopted, the demand and supply for decontaminated blood will change to

Qd = 210 - 1.5P and Qs = 2.5P - 150.

What price do you expect to prevail if the new screening methods are adopted? How many units of blood will be used in the United States? What is the level of consumer and producer surplus? Illustrate your findings in a graph.

a: Price

b: Units of Blodd

c. Consumer Surplus

d. Producer surplus


Related Discussions:- New screening methods adopted price do you exect prevail

The growth of per-capita gdp in the period immediately, An economy has the ...

An economy has the following parameter values: s ?=.3,d ?=.1,A ?=1,andL ?=100.2 The economy begins at steady state but at some point is attacked by Godzilla, destroying 70% of the

Positive and normative economics, POSITIVE AND NORMATIVE ECONOMICS E...

POSITIVE AND NORMATIVE ECONOMICS Economics as a social science adopts an analytical approach to the study of changes in economic variables on the actions of human beings. Th

Time inconsistency of monetary policy, I will need to upload a file as the ...

I will need to upload a file as the questions are bit too long to type

National income determination, impact of change in government expenditure a...

impact of change in government expenditure and tax on fiscal policy

Ppcs, how to get full marks in a drawing of ppc diagrams

how to get full marks in a drawing of ppc diagrams

Calculate the value of a maximum flow, The following network N has sourc...

The following network N has source S and sink T with arc capacities as shown. (a) Use the maximum flow algorithm to find a maximum flow from S to T and draw a diagram

Full employment and the natural rate, Is the natural rate of unemployment f...

Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related? Is the actual rate of unemployment currently greate

What do you mean by multiplier effect, Q. What do you mean by multiplier ef...

Q. What do you mean by multiplier effect? Loans and deposits in banks give rise to a significant multiplier effect. We use a simple instance to explain this effect. Consider th

The short-run macroeconomic equilibrium, The figure below defines an econom...

The figure below defines an economy's aggregate demand curve and its short-runand long-run aggregate supply curves (labelled AD, SRAS, and LRAS, respectively). practically,the econ

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd