that is used by a consumer. this drug is regulated by the government so that the price is p. the price is fixed by the government but the quality depends on the manufacturing procedure the firm uses. the good (g) procedure costs the firm 4 and yields value of 9 to the consumer. the bad (b) procedure costs the firm nothing and yields the value of 4 to the consumer. the consumer chooses whether to buy the drug or not, and at the moment of purchase, she does not know what procedure was used.