c. Now suppose that each vaccination given generates an external benefit, as those who do not get

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c. Now suppose that each vaccination given generates an external benefit, as those who do not get vaccinated are less likely to get the flu when others do get vaccinated. As a result, suppliers receive a $10 subsidy from the government for each vaccine. For example, if consumers pay $10 per vaccination, suppliers receive

$20, so only $10 from consumers is required to induce suppliers to offer 70,000 vaccinations per month. Plot the new supply curve.

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Principles Of Microeconomics

ISBN: 9781843317708

1st Edition

Authors: Libby Rittenberg, Timothy Tregarthen

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