Suppose, in a small city, a large share of the supply of COVID vaccine comes from USA and UK. Suppose that the marginal cost of vaccine is constant at $2 per vaccine and the demand for vaccine is described by the following schedule: Price ($) Quantity 70 4 80 3 90 100 110 2 1 a. If there were many suppliers of vaccines, what would be the price and quantity? b. If there were only one supplier of vaccines, what would be the price and quantity? [Hint: profit]

Suppose, in a small city, a large share of the supply of COVID vaccine comes from USA and UK. Suppose that the marginal cost of vaccine is constant at $2 per vaccine and the demand for vaccine is described by the following schedule: Price ($) Quantity 70 4 80 3 90 100 110 2 1 a. If there were many suppliers of vaccines, what would be the price and quantity? b. If there were only one supplier of vaccines, what would be the price and quantity? [Hint: profit]

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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