F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
Newspaper Article
Title
“Don’t just punish doctors on vaccine” Health groups must account for unlisted flu drugs: lawmaker
Name of newspaper South China Morning Post
Date of issue
2nd December, 2005
Description of the issue
Since the recent scare over bird flu pandemic and the peak flu
season resulted in a run on vaccine supplies. The legislator for the medical
sector said that there should be regulations on the practice of Health
Management Organizations (HMOs) for the unlisted vaccine in the market.
Dr. Kwok Kar-ki thought that HMOs should be responsible for this disgraced
incident as he thinks that HMOs should take discipline for regulating their
individual doctors.
However, the President of the Hong Kong Medical Association
said that doctors and HMOs should not bear the responsibility of validity of
the vaccine as they do not have the duty or power to check whether the
vaccines are registered or not and the doctors are only the hired staff of the
medical group, therefore they should not be responsible for the trading
company who import the unlisted vaccines.
Due to the peak season of bird flu and the scare of bird flu, the
market price of the vaccine increase from $130 to $180 per injection in
September, and the cost of the vaccine also increase from $38 to $50.
Although the private doctors are charging per injection of bird flu between
$100 to $300 of which the cost are between $40 to $50, they still emphasize
that vaccines are never money-making business for them. They only provide
this service as a duty to protect the public health.
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
The explanation of the article
At the beginning, the supply of vaccine is enough for the demand of Hong
Kong citizens. Therefore, it is at the equilibrium level.
Because of the bird flu attacks Hong Kong, the demand for vaccine increases
rapidly. Therefore, the demand curve shifts right.
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
Newspaper Article
Title
Taps off to 26,000 as slick moves down river –
residents line up at water trucks after water in Dalianhe
cut for three days
Name of newspaper South China Morning Post
Date of issue
2nd December, 2005
Description of the issue
Since there was an explosion happened in a chemical plant in Jilin on 13th
November,2005 near ChangChun. It causes the pollution in Songhua River
near Harbin and Dalianhe town in the central Heilongjiang area. There were
toxic chemicals and poisonous substances spill into the river and resulting in
over 26,000 residents of Dalianhe town have to live without water supplies for
three days. The local authorities and the communist party members went out
door to door handing out leaflets and giving boxes of drinking waters to the
poor and elderly.
The Chinese government is also working closely with the Russian government
alleviate the effects as the toxic slick moves down the Heilong River near the
two countries’ boarder. Both governments are sharing information, data and
observations about this incident. The Russian government has indicated that
Khaharovsk, the main port on the Heilong river 600,000 residents would be
well informed in advance two to three days before the taps off for the water
supply.
In Yilan, police and the communist party members have been working in the
freezing weather to help the residents who has been lining up for getting water
from water trucks. Moreover, sufficient water has been reserved for hospital,
kindergartens and schools during the three days shut down in water supplies.
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
The explanation of the article
Originally, the water supplies and water demands are as follow:
However, there’s a water pollution occurs in Songhua River near Dailanhe and
affect the mainly water supply there due to the toxic chemical. This leads to
the government taps off for the main water supply.
Because of the tap off water supply, quantity demanded is larger than
quantity supplied (Qd>Qs). Therefore, excess demand exists.
The government there provides water through the water trucks to solve the
shortage of water:
F.4 Economics News Analysis
Enoch Chim (6)
Beatrice Lau (17)
Janice Wong (27)
Although the governments have give a helping hands to reduce the
problem of shortage,S2 shift left, Residents still needed to line up to get the
water(S3<S1).As a result, quantity supplied is smaller than quantity
demanded, new excess demand exists.