Consider the US market for vaccines. Vaccines prevent the consumer of the vaccine from getting viral infections and also reduce the risk of other people getting infections. Construct a graph that describes the vaccine market in the US (numbers are not necessary). Make sure to label the axes and show the following elements:

a. The private marginal cost (PMC) curve for vaccines

b. The private marginal benefit (PMB) curve for vaccines

c. The social marginal cost curve (SMC) for vaccines

d. The social marginal benefit (SMB) curve for vaccines

e. Identify the quantity and price of vaccines in a competitive market equilibrium (i.e. a free market without government regulation) as QM and PM

f. Identify the socially efficient quantity of vaccines as QS and explain why you feel this quantity maximizes social welfare in the vaccine market.

g. Shade in the area that corresponds to the deadweight loss if the quantity of vaccines is QM instead of QS

h. Does the market produce too many or too little vaccines? Why?