Instructions to students:

All questions are compulsory.

Each question is 5 marks .

TASK: EC2011 Health Economics Assignment

Question 1

In the paper “What price data tell us about drug markets (1998), the authors conclude that the illegal drug market is characterized by:

1. Very similar prices across regions and times
2. Prices are quite similar across cities but the differ between city and suburban areas
3. The evolution of drug prices over time is quite flat
4. None of the above

Question 2

Refer to the figure below. An isoquant that illustrates substitution possibilities between nurses and physicians is represented by panel

1. A
2. B
3. C
4. B and C