Q1: A terrible disease called ctitia is ravaging the woebegone nation of Pcoria. Fortunately, government scientists have just discovered the formula for an effective vaccine. Given current raw material prices, it costs $10 to produce each dose of vaccine. Assume that Pcoria has 100 citizens, and that the demand for vaccine in the first time period is as follows: P _ 1 Q 100 l) where P is vaccine price and is disease prevalence. o (a) Assume a competitive vaccine manufacturing market and a disease prevalence of 20% (7 = 0.2). How many citizens demand the vaccine this period? c (b) After this initial round of vaccinations, demand for the vaccine plummets because many citizens have been vaccinated and do not need another vaccine. Among the unvaccinated population, demand is now: P =50 2 Q 't' (l The fictitia outbreak has slowed down considerably but the prevalence is still rising. Now assume qr: 0.25. How many unvaccinated citizens will demand vaccine this period? c (c) The demand for vaccine in the third period is as follows: o=w$ (a Because of the success of the vaccination campaign, disease prevalence is now 10%. How many unvaccinated citizens demand vaccine this period? a (d) What does the price need to be for everyone to vaccinate? o (e)T.he Pcorian parliament appropriates funds for a vaccine subsidy in an attempt to wipe out ctitia once and for all. If they subsidize manufacturers by the full production cost of