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18 all question please Generally, demand for bug-repellent products in the U.S. is low in February. One upside to the wintery weather currently blanketing swathes
18 all question please
Generally, demand for bug-repellent products in the U.S. is low in February. One upside to the wintery weather currently blanketing swathes of the country is it keeps insect-related worries at bay. But this isn't your typical February. Compared with last winter, sales for Invisaband's signature blue wristband, which repels mosquitoes, were up more than 400 percent so far this month. Why? The Zika Virus. The virus, which is spread via mosquito bites, was initially discovered in the 1940s, but did not spread widely in the western hemisphere until this spring. Recently, the virus has flared up in tropical regions throughout South and Central America. So far no one has contracted the disease through a mosquito bite in the U.S., but there is a growing concern it will spread throughout the country with the arrival of mosquito season in the spring. For companies that produce mosquito-repellent products such as Invisaband -- which launched on Indiegogo in November 2014 and has since made $1 million in revenue -- this means recalibrating demand. Already the increase in orders, an uptick founder Matthew Kostanecki says neatly lines up with the dramatic increase in Google searches for Zika in the U.S., has him scrambling to keep up. We are going to run out of stock," he says. Because Invisaband's manufacturer is in China, and won't open for production until mid-February, new orders can't be delivered until early March. 1. According to this article, what caused the demand for insect repellent products to increase during February 2016? 2. What determinant (shifter) of demand does your answer to question #1 exemplify? How can you tell? 3. According to this article, what has happened to the supply of insect repellent products? 4. What determinant of supply does your answer to question #3 exemplify? How can you tell? 5. Use the graph to show the result of the change in demand and supply of insect repellent products. What will likely happen to the equilibrium price and equilibrium quantity of insect repellent products? Part 2: Making Predictions- Use supply and demand to complete the following. 6. What will happen to the equilibrium price and quantity of insect repellent products if new drug companies enter the market? Explain. 7. Assume instead that a new study suggests that the Zika Virus is not transmitted by mosquitoes. What will happen to the equilibrium price and quantity of insect repellent products? Explain. Part 3: Stretch Your Thinking- Complete the following. 8. Assume that your friend Ben accuses the producers of insect repellent of being immoral for profiting from this public health crisis. He suggests that the sellers of insect repellent should provide their products for free or, at least, charge a significantly reduced price. Do you agree or disagree? Use supply and demand to support your Step by Step Solution
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