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please answer every part 9. mDrugs [16 points] Suppose a new infectious coronavirus is spreading though the United States. This coronavirus leaves some victims with

please answer every part

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9. mDrugs [16 points] Suppose a new infectious coronavirus is spreading though the United States. This coronavirus leaves some victims with long-term fatigue and exhaustion, called "gg'nglrfatigue? a. After conducting a survey, survivors report that they are indifferent between living 50 years without mufatigue or 35 years with Wfatigue. Based on this survey, what is the implied QALY weight associated with having mufatigue? [2 points] b. A new drug is developed that cures mfatigue. This drug cures the problem for life with a one-time dose. Suppose average life expectancy is 75, the QALY weight is the value you calculated in part (a), and the value everyone places on one quality-adjusted life-year (QALY) is $50,000. How much would a 60-year-old be willing to pay for this drug? (Ignore consumption and discounting costs for this problem.) [Ms] c. If the marginal cost of this drug is $120,000 per person, what is the maximum age at which it is socially efcient to provide this new medical treatment? (Hint: for a Mthe marginal cost clearly exceeds the marginal benefit. For a Mme opposite is true. Find the cutoff age at which the marginal benefit equals the marginal cost.) [3 points] d. Now suppose that insurance covered 75% of the cost of this drug for all individuals. What is the maximum age now that will be willing to pay the cost of this drug? [W e. Suppose there is one individual of each age with mfatigue in the United States. What is the total gain in consumer surplus from insurance? What is the increase in spending by the insurer? What is the total dead weight loss due to insurance? [9.915%]

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