Econ homework
Question: given that the equilibrium price and quantity of AIDS drugs does not meet the needed quantity for universal access to treatment, what's the best way to distort the market to deliver essential medicines to the world?
Note: the price elasticity of the need curve for AIDS drugs is zero, while the quantity of need is constantly increasing over time.
It may also be necessary to take into account the effects of patent monopolies.
Note: the price elasticity of the need curve for AIDS drugs is zero, while the quantity of need is constantly increasing over time.
It may also be necessary to take into account the effects of patent monopolies.
posted by onlooker at 2:58 PM
1 Comments:
Firms should practice third-degree price descrimination and increase supply to meet the demand at the level of need.
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