When British regulators were forced to suspend the licence of a flu vaccine plant in Liverpool operated

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When British regulators were forced to suspend the licence of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination, the number of flu vaccines available in the U.S. market decreased by 48 million doses. This was nearly half of the total supply of vaccines in the market. Use a supply and demand diagram to illustrate the impact of this event on the market for flu vaccines in the United States. What impact will this have on the equilibrium price and equilibrium quantity in the U.S. vaccine market?

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Principles Of Macroeconomics

ISBN: 9781982166649

1st Canadian Edition

Authors: Betsey Stevenson, Justin Wolfers, Philip Oreopoulos, Kevin Milligan

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