Business Economics
Assume that the government is planning to address the problem of high prices for flu vaccine. You are hired as an economic consultant to decide upon what kind of a policy to implement in order to improve both the accessibility and affordability of flu vaccine for consumers. Which of the following policies would most likely achieve the goal? a. A price floor. b. A price ceiling. c. A subsidy to the producers. d. A subsidy to the consumers. Using four separate sets of supply-and-demand graphs show the effect of each of the policies on market outcomes. Assume competitive markets with an upward-sloping supply curve and a downward-sloping demand curve.
