The Middle East & Africa Ventilator Market
The article is about the Middle East & Africa ventilator market. The article tells readers that the demand for ventilators is rapidly increasing because of increasing respiratory infections globally. A ventilator is a device that helps a patient who is suffering from respiratory ailments by providing them with the right quantity of oxygen. Respiratory diseases are an ubiquity in the present - day world causing the demand for ventilators to increase. According to the article, “Rising awareness regarding health issues and increasing consumption of healthcare services drive the medical equipment market.” (GlobalNewswire). Increasing awareness about health issues, respiratory diseases in particular, will cause an increase in the demand for medical equipment such as ventilators. These are the main reasons the demand for ventilators is so high.
According to the statistics, “The Middle East & Africa ventilator market is expected to reach US$ 597.34 million in 2027 from US$ 222.63 million in 2019.” (GlobalNewswire) which gives the audience further evidence as to how the increasing demand for the ventilators is also causing a high producer surplus. This graph shows the total government spending on the subsidy, which in this case would be the ventilators. P2 is the amount of money the producer receives whereas P36 is the amount of money the consumer pays. The graph tells the audience that the money that the government of Saudi Arabia has offered has helped increase the supply
to match the high demand for ventilators causing the market to be at an economic equilibrium. The shaded area in the graph shows that the government’s total spending on the subsidy is equal to the subsidy per unit multiplied by the level of output. This causes us to move our focus on how government intervention plays a major role in this. Government intervention is when the government takes actions that affect the market with the target of changing the free market equilibrium. In this case, the Saudi Arabian government has helped promote ventilators by arranging meetings to spread awareness and symposiums to boost the overall ventilator market growth in the country.
Additionally, the government has taken initiatives to educate citizens and spread the knowledge of various healthcare resource options. Because of this, there has been a great increase in economic efficiency thus causing a fairer distribution of income throughout the country. In the graph above, a perfectly price inelastic diagram is shown. The main reason I have provided this graph is because it shows how the demand for the good/service doesn’t change in response to the price. The ventilators are essential to patients suffering from respiratory diseases. This means that if there is change in the price of the ventilators, the demand for it will not change. For example, if there is an increase in the price of the ventilators and a dying patient is in need of it to stay alive, they will pay however much to keep the service. Thus, proving my point of how quantity demanded for a good or service does not change in response to an alter in the cost. In overall, this graph 7 demonstrates a PED coefficient equal to zero which indicates perfectly inelastic demand.
This rising effects of the COVID -19 pandemic has also caused a boost in the ventilator markets. Due to the virus, a patient’s lung can be severely damaged causing them to need a ventilator. As a result, the demand for these ventilators have been increasing
rapidly. As a result of various factors, the Middle east and Africa ventilator market growth has shown a great augmentation. Some of these factors include rising impacts of the coronavirus, the rapid rate of respiratory diseases and the advantageous government