Shortly after Divoc moves to non-linear pricing, the regulator notices a sharp spike in the average price paid for a unit of the vaccine. The regu. lator, who cares only about consumer surplus, suspects that Divoc's ability to price discriminate is harming consumers. To combat this, the regulator proposes two pricing! restrictions The first such restriction prohibits Divoc from explicitly charging a different price to different pharmacy types. In other words, it cannot use the identify of a pharmacy to set the price. Otherwise, Divoc is free to price as it pleases. If this policy goes into effect, how many vaccines will be sold? (Hint: Assume all pricing schemes are still available to Divoc, only now it is restricted in the information it can use to price.)
a) 175,000 units
b) 130,000 units
c) 90,000 units
d) 230,000 units
e) 330,000 units
f) 270,000 units
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Shortly after Divoc moves to non-linear pricing, the regulator notices a sharp spike in the average...
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