Question
Beximco Pharmaceuticals Limited has entered into a deal with the Serum Institute of India to acquire 30 million doses of a COVID-19 vaccine named AstraZeneca.
Beximco Pharmaceuticals Limited has entered into a deal with the Serum Institute of India to
acquire 30 million doses of a COVID-19 vaccine named AstraZeneca. According to this deal
Beximco will purchase five million doses of vaccines per month, whenever the vaccine is ready.
AstraZeneca will cost about 425 taka per dose to import.
(c) If the government impose an import-tariff on the vaccines, how such a tax can impact the price
and the tax burden in the vaccine market of Bangladesh?
(d) Suppose there are two vaccines available to the consumer, vaccines A and B. The two vaccines
have different levels of effectiveness and are sold for different prices. At the consumer's
equilibrium for vaccine consumption what condition will be fulfilled?
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