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Preface: The following initial conditions exist in the pharmaceutical drug market for nerve pain medication: -Initial Equilibrium Price (P): $35 per prescription bottle -Initial Equilibrium
Preface: The following initial conditions exist in the pharmaceutical drug market for nerve pain medication: -Initial Equilibrium Price (P): $35 per prescription bottle -Initial Equilibrium Quantity (Q): 2,000 prescription bottles Now suppose that Hurricane Maria destroys a "majority" of the production facilities that were producing nerve pain medication. Simultaneously, new research is published that shows that nerve pain medication is "slightly" better at treating migraine headaches than the currently prescribed class of medications. Instructions: Use the information above to answer the following questions in an essay format: 1. Can we say with certainty what happened to the equilibrium price in the nerve pain medication market? Why or why not? 2. Can we say with certainty what happened to the equilibrium quantity in the nerve pain medication market? Why or why not? 3. ***Graph the market and the subsequent changes in the market on a piece of paper/tablet. Please make sure that you label all of the key points and information on the graph and submit a picture or file of your graph below your short answers into the textbox below
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