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You are the manager ofan organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report

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You are the manager ofan organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americans contract Hl'uII each year through blood transfusions. Although every pint of blood donated in the United States undergoes a battery of nine differenttests. existing screening methods can detect only the antibodies produced by the body's immune system not foreign agents in the blood. Since it takes weeks or even months for these antibodies to build up in the blood. newly infected HIV donors can pass along the virus through blood that has passed existing screening tests. Happily. researchers have developed a series of new tests aimed at detecting and removing infections ti'om donated blood before it is used in transfusions The obvious benefit ofthese tests is the reduced incidence of infection through blood transfusions. The report indicates thatthe current price ofdecontaminated blood is $64) per pint. However. ifthe new screening methods are adopted. the demand and supply for decontaminated blood will change to Gd=210 -1.5Pand GS= 25P-150. 1r'Ir'hat price do you expect to prevail ifthe new screening methods are adopted? How many units of blood will be used in the United States? |r'll'hat is the level of consumer and producer surplus? Illustrate your ndings in a graph. Instruction: Enter your response rounded to the nearest whole number. Instructions: Use the tools provided to graph the supply and demand curves from U to 150 pints of blood [two points total for each curve}. Indicate consumer and producer surplus. 150 Tools 140 / / 12'] Supply Demand run A A Consurrra su F'roduca surp Price per pint or: on 4D 20 21] 4D 6'} HI] 100 120 'lIICI 'I-EIIJ Pints cl hlaad

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