Economics Writing Assignment - Supply & Demand Essay
Writing Assignment #1: Supply and Demand “Fears of Widespread Flu Raise Demand for Vaccine in Isles” 16 February 2013 Last month, the Star-Advertiser reported a sudden increase in demand for flu vaccines after documented widespread of illness and recent deaths from the influenza virus - Economics Writing Assignment - Supply & Demand Essay introduction. Flu season typically begins in October and continues through mid-May of the following year. Currently, many suppliers are running low on the strain of influenza for the 2012 – 2013 Season. Economics is very useful in analyzing and defining typical human behavior.
This part of the social sciences studies how individuals make decisions in allocating limited resources to satisfy needs and unlimited wants. The dilemma presented by Star-Advertiser reporter, Marcie Kagawa, is “Fears of Widespread Flu Raise Demand for Vaccine in Isles. ” Change in demand for the influenza vaccine occurred from society’s current state of mind, shifting consumer preference and increasing number of buyers. Fear has generated the change in people. The reported number of illnesses and deaths caused by influenza initiated a greater concern for health and safety, thus increasing the demand for protection.
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More individuals are running to the nearest clinics, pharmacies, and healthcare providers to obtain a dose of the flu vaccine. Some people are so panic-stricken they go in for a second dose. Each year, prior to production and distribution, the United States Food and Drug Administration (U. S. FDA) must approve the influenza vaccine formulation for each licensed manufacturer. There are only six manufacturers licensed to produce vaccines for the 2012-2013 Season. Companies conduct their own cost-effective and cost-benefit analyses to review the economic value of production.
Cost is a major element that affects the outcome of supply curves. Determining how much of the influenza vaccine to provide for the public poses quite a challenge for every company, as the strains of viruses are constantly mutating. Researchers conduct studies to determine what strains to put in the vaccine, develop a new formula, and manufacturers create a fresh batch every year. Pharmaceutical companies calculate an approximation of how many doses to produce. According to our textbook, “the prices of the resources used in the production process help determine the cost of production incurred by firms. Generating too much influenza vaccine inventory would be wasteful and unprofitable if there are any leftovers on shelves at the end of the season. On the other hand, if suppliers do not allocate resources appropriately, there may not enough supply, affecting the ability to produce vaccines and quantity of the vaccine made available to society. Healthcare providers may endure the possibility of a widespread epidemic. Economics is useful in analyzing and defining typical human behavior.
However, influenza vaccine economics is very unpredictable because there are many factors involved with supply and demand. Continued research and developments in technology is beneficial. Economics and cost models assist in developing strategies for better decisions with allocating the limited resources available. ? Works Cited Kagawa, Marcie. “Fears of Widespread of Flu Raise Demand for Vaccine in Isles. ” StarAdvertiser. com. 20 January 2013. http://www. staradvertiser. com/newspremium/20130120__Fears_of_widespread_flu_raise_demand_for_vaccine_in_isles. html.