The state of Wilkes is trying to distribute their H1N1 vaccines through priority of people as the supply is limited. Apparently, supply meets demand in Wilkes.
“The target groups are pregnant women, people between 6 months and 24 years old, people who live with or care for children younger than 6 months, people 25 to 64 with medical conditions that put them at higher risk for influenza complications and health care and emergency medical services personnel (Wilkes, 2009).”
As the flu season is coming along, a huge part of the population will demand the vaccination to stay immune from it. Will Wilkes be able to keep up with the demand?
The Demand for H1N1 Vaccines due to Global Pandemic
As the pandemic hits the world, more people will require the vaccine. However, the vaccine is limited in supply. As the season continues, the demand may exceed the supply. The supply is rather inelastic, implying that people will be willing to pay high prices. D1 shows the increase in demand leading to a new increased price (P1). This settles the equilibrium at at E2.