Question 35
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Suppose this is the market for Remdesivir. Remdesivir is a broad spectrum anti-viral treatment. Originally researched to treat Ebola, research had been done to see its effects on SARS-CoV and MERS. Recently, during the current SARS-CoV2 pandemic,
Remdesivir has been studied to see if it has a positive effect on Covid19 patients. The graph above represents the market for Remdesivir before the studies done on Covid19 patients. What is the most like equilibrium price and quantity if it is found that
Remdesivir has a positive effect on Covid19 patients?
a. P=55, Q=60
b. P=58, Q=70
c. P=53, Q=20
d. P=7.50, Q=110
e. None of these.