Question

he 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. Who will receive the vaccines if the University Health Center sells them for this price? the students who will pay for them at that price the students who most need them the students with asthma and diabetes the students who most want them Suppose the school sells all of the vaccines at this price. What has it managed to achieve? Choose the best answer.

Answer 1

Answer: 1. STATEMENT 1

2. It has achieved efficiency.

Explanation:

1. The students who will pay for them at that price will receive the vaccines if the university health center sell them for this price. In this case the theory of free market comes into play, those who have the money will get the resources.

2. The free market theory helps to establish efficiency. If the resources were to be distributed for free the demand will exceed supply resulting in inefficient use of resources.