Question

uestion 5 of 34 The University Health Center receives 500 flu vaccinations at the beginning of each flu season. Suppose they offer these vaccines for $20.00 each. Assume that college students have varying budgets- some have some money to spare, some are on a very tight budget. Some students have pre-existing conditions, such as asthma and diabetes that place them at high risk for the flu. a. Who will receive the vaccines if the University Health Center sells them for this price? Students with asthma and diabetes. O The students who most need them. O The students who most want them. OThe students who will pay for them at that price b. Suppose the school sells all of the vaccines at this price. What has it managed to achieve?

Answer 1

A. Here the price is $ 20 per vaccine therefore only such students will buy who need it and those who can pay for it. As we know demand can be defined as need, ability to pay and willingness to pay.

Thus, last option is correct.

Equity efficiency trade off

As we know equity and efficiency does not come together. That is higher is equity so there will be lower efficiency.

Option A. Actions intended to make economic outcome fairer can cause efficiency to decrease.

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