A fake country of Wathu has been giving a virus treatment tablet for free to poor citizens who exhibit symptoms. The tablet makes somewhat sick people feel a bit better and reduces the death rate of those who are extremely sick. Nobody sells counterfeit pills and no prescriptions are needed for the tablets. Some of the poor Wathu citizens are selling their treatment tablet to richer citizens for $400, which is what the rich citizens would have to pay to the treatment center per tablet. The marginal cost of production is $400. How would prohibiting these voluntary transfers of treatment tablets affect total surplus?

Phlebotomy Essentials
6th Edition
ISBN:9781451194524
Author:Ruth McCall, Cathee M. Tankersley MT(ASCP)
Publisher:Ruth McCall, Cathee M. Tankersley MT(ASCP)
Chapter1: Phlebotomy: Past And Present And The Healthcare Setting
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A fake country of Wathu has been giving a virus treatment tablet for free to poor citizens who exhibit symptoms. The tablet makes somewhat sick people feel a bit better and reduces the death rate of those who are extremely sick. Nobody sells counterfeit pills and no prescriptions are needed for the tablets. Some of the poor Wathu citizens are selling their treatment tablet to richer citizens for $400, which is what the rich citizens would have to pay to the treatment center per tablet. The marginal cost of production is $400. How would prohibiting these voluntary transfers of treatment tablets affect total surplus?

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