Question: Read the following article about viatical agreements. https://www.investopedia. com/terms/v/viaticalsettlement.asp. (a) Suppose that the market supply curve for these agreements is given by Qs = c+dp
Read the following article about viatical agreements. https://www.investopedia. com/terms/v/viaticalsettlement.asp. (a) Suppose that the market supply curve for these agreements is given by Qs = c+dp where p is the price of the agreements and c; d are constants. Let the equilibrium price be $100,000 and the equilibrium quantity be 10,000. Assume that the elasticity of supply is 2.0. Calculate c and d. (b) Do you think the government should let these trades take place? Brie y support your position. (c) Draw a sample market demand curve for viatical agreements. (d) Suppose the government is considering a ban on viatical agreements. Use the supply curve from part a) and the demand curve from part c) to analyze the welfare implications of this policy. In particular, identify the change in consumers surplus, the change is producer surplus, and the deadweight loss (just label areas, don't give a numerical answer)
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