Question 1
Conditions That Will Exist If Tuition Is kept Below Equilibrium Price
When the tuition is set at a fee which is below the equilibrium, the demand will be more than the supply; thus there will be a distress situation that is not conducive to education. This would show a good effort by the government, as people will see it as a show of constructive and admirable strength by the government to make education relatively cheap. The effect of this is an increase in the number of students’ intake and in a great way and educated society. This situation is not refutable, but there is more sense in creating a condition where the education in itself is not straining, and the education system brings no benefit to the subscribers.
In economic terms, there are two situations that will occur. First, the customers will shift to alternative providers (substitute) of the service with the hope of getting the fee at a lower price. The second situation is that there are suppliers (state universities) who also are at an advantage of increasing their tuition fee charges because there is more demand that what the market can supply. Ultimately, the buyers regardless of the cost will shift to getting a substitute of the same.
Fu (2014)explains that “the surplus buyers (students) who are in need of the services of the state institutions of higher learning do not get to reap good returns. Reasons for this is that either they fail to join, or they have to opt for substitute colleges and universities at a price relatively high (p. 226).” The other alternative is to try the community colleges and look for transfer registration. Variances and shifts in the supply and demand model will take place, such as the students registering for waiting lists, enrolling in the community colleges for a term or two at most with the hope of getting a transfer.
Education will not be equally accessible in the stated conditions. This is because the application will be more than what has been sustained by the market. Poor and inefficient education will come to play as there will be congestion in the classrooms because of the excess supply. The state universities and colleges will experience a situation of enrolling and subsequently admitting the students who would typically be qualified. There are some institutions of higher learning that will experience a changing enrollment to the more academically promising and value-worth institutions. This is especially for the individuals who are solely involved in the full-time study and require valuable education.
Question 2
Economic Benefits of flu shot
The reliable and competent reviews of the cost-effectiveness research among the aged people show that administering the flu shot is a relatively cheap method and thus saves on expenditure. Similarly, economic assessments for administering the vaccine on children have often come to a conclusion that this method either saves on the costs or is cost-beneficial especially when administered to an extensive scope. Additionally research, according to Burden of Influenza & Benefit of Vaccination (2014), affirms that global vaccination with inactivated trivalent influenza vaccine saves on expenses, and at the same time offering beneficial medical care among those who are expectant.
In Canada, the targeted vaccination of expectant women with co-morbidities has been acknowledged to be economical. Research analyzing the economic aspects of influenza vaccination of people suffering from the chronic illnesses confirm that it is cost effective. As a result, the influenza vaccination is appropriate and suitable in alleviating the anticipated outcomes; which is inclusive of the medically applicable concerns and complications, economic and other losses that apply to the loss of a job or academic time, and avoiding absenteeism. Subsequently, this resonates to an economically viable population.
Ways the government is involved in the distribution of the flu shots
The government does not have a direct obligation in the distribution. It has played the role of letting the private sector through such ways as the private doctors and pharmacies to aid in the distribution of the influenza vaccine. Nonetheless, the government through its appointed departments and agencies have made key efforts to improve the production limit of periodic influenza medicines. This includes aiding the manufacturers by investing in the process to make it stable and maximize their production ability and enhancing guidelines regarding the approval process. In the previous years, the state has realized insufficient supply of vaccines. Thus the attempt to offer increased production capacity should result in a higher application quantity.
Reason as to why the private market would produce inefficient result
Reason being that the growing externalities are not considered or the importance of others who never make the decision to cater for the cost or value. As per se, insufficiency in the distribution comes to play as a result of the engraved minimal social advantage on the side of the private providers. Private market suppliers will not in a great way elevate the value of the flu shot by upholding the social ethics; instead, it is for the idea of increasing their pocket prowess in a price per delivery notion. The private suppliers would also in a way limit the amount of the vaccines in the market creating distress through increased demand. In terms of economics, an increase in demand calls for an increase in the price of a commodity, a situation which in a worse way could be referred to as a social evil endeavor by the private suppliers.
One way that government involvement could achieve an efficient quantity of vaccinations
Government’s involvement in attaining sufficient quantities of the flu shots is by coming up with and enacting policies that target the specific regions of the population for vaccination. The policies should play a key obligation in purchases and distribution of the vaccines. Through the policies, only vetted suppliers whose ethics and objective is for the greater good and welfare of the society should be permitted to undertake the trade, and this enable an efficient quantity of vaccine administration. No cases of insufficiencies can and or will be experienced.
Also, the policies through the government’s departments and agencies ought to encourage the manufacturers and those who distribute to incorporate a distribution channel. Through this channel, partial shipment is applied to enable numerous providers to commence the administering of the vaccines in early stages of the vaccination period. This enables the time differences from shipping to administering to be minimal so that every provider has perpetual supply and can go on with vaccination process to the patients.
Difference between private and public good
Private good
In economic terms, this refers to a commodity that once bought only a given individual can use the product. This hinders another person from ‘using’ the product. In relation to the flu shot, the involvement of the private suppliers makes the commodity a private good. And the term using implies private distribution that is done without so much government involvement.
Public food
Refers to a product that one person can consume without diminishing its accessibility to another individual. Government’s involvement in the supply and use of the flu shot without the interference of the private entities makes flu shot vaccine a public good.
References
Burden of Influenza& Benefit of Vaccination. (2014, March 14). Retrieved from APACI:http://www.apaci.asia/influenza/burden-of-influenza-a-benefit-of-vaccination
Fu, C. (2014). Equilibrium Tuition, Applications, Admissions, and Enrollment in the College Market. Journal of Political Economy, 122(2), 225-281.
