Answer to Question #285471 in Microeconomics for giahue

Question

The inequality in the supply of COVID-19 vaccines between rich and poor countries is creating a serious “oversupply and undersupply” situation.

Meaning?

Answer 1

Solution:

The inequality in the supply of COVID-19 vaccines between rich and poor countries is creating a serious oversupply and undersupply situation since rich countries are being oversupplied by the supply of the vaccines thus experiencing oversupply while poor countries are getting less of the vaccines thus experiencing shortages.

This is because rich countries have enough resources to produce or order as many vaccines as they want which is not the same with poor countries.