In the News

Coronavirus: Elasticity of supply of ventilators

Graham Watson

18th March 2020

This article flags up the issue of price elasticity of supply in the middle of the coronavirus outbreak: the governments clarion call for businesses to shift to the manufacture of ventilators makes you wonder whether it will be easy to produce more in the short-term.

It is interesting to note the things that are likely to limit the ability of industry to respond. The major issue appears to be a regulatory one - that and the intellectual property rights of existing manufacturers who may be pressed into sharing proprietary intellectual property with other firms.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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