Unformatted text preview: If the government sets the co-payment at $6, then how many prescription drugs will the old buy? What will the new market demand for prescription drugs be? What will the new market equilibrium price and quantity be? How many prescription drugs will the young buy? How many will the old buy? How will the new Medicare prescription drug benefit affect the market demand for prescription drugs? How will the drug benefit affect the prices that non-seniors and the non-disabled pay for prescription drugs? Will they be helped or hurt by the new program? In your answer, be sure to explain why. Short Answer Five You are George Costanza. You work for the New York Yankees. George Steinbrenner wanted to make championship series tickets available to the public at a reasonable price, so he sold field box seat for tonight’s ALCS game against the Boston Red Sox for $225 at the box office. Your telephone rings. You pick up the phone. It’s Mr. Steinbrenner and he is mad! He orders you to come into his office immediately. He just visited StubHub.com and saw that field box seats for tonight’s game into his office immediately....
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Market Equilibrium