Biology Forums - Study Force

Question 1.

Figure 7-1

Figure 7-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.

Refer to Figure 7-1. At the market equilibrium, the deadweight loss is equal to

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$0.

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$250,000.

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$500,000.

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$1,000,000.

Question 2.

Vaccinations tend to result in a positive externality. Draw a graph showing the market for vaccinations, including both the marginal private benefit curve and the marginal social benefit curve. Identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the deadweight loss.

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