1. Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine. The private market equilibrium quantity is doses per day.

A. So

B. 75

C. 100

D. 125

2. Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this Ilu decreases as more people receive the vaccine. One of die demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.

3. Refer to the figure below. Private markets will provide ___ units of this good per day, and socially optimal number of units per day is ____.

Transcribed Image Text:

Price (5/dose) 110 100 90 80 70 60 50 40 30 20 10 01 S 02 0 25 50 75 100 125 150 175 200 225 250 Quantity (doses/day) Price (S/unit) B U O A. H; F B. H; G Social MC Private MC F H Quantity (units/day) Demand C. F; G D. G; F Price (5/dose) 110 100 90 80 70 60 50 40 30 20 10 01 S 02 0 25 50 75 100 125 150 175 200 225 250 Quantity (doses/day) Price (S/unit) B U O A. H; F B. H; G Social MC Private MC F H Quantity (units/day) Demand C. F; G D. G; F

Answer rating: 100% (QA)

1 B 75 2 C 100 There are increased benefits to all people in the societ... View the full answer