Question
First, how can economic theory explain the government providing the vaccination free of charge, to facilitate the uptake of vaccinations? The answer is to do
First, how can economic theory explain the government providing the vaccination free of charge, to facilitate the uptake of vaccinations? The answer is to do with market failure, specifically positive externality .Using a diagram explain why there is a difference between the private benefit curve and the social benefit curve. Secondly explain the likely shape of the demand curve and the uptake if left to the market - i.e., individuals paid for vaccines - and how the demand curve will be shifted with the free provision of the vaccine by the government. Note that public health experts advocate more than 90% of the population be vaccinated in order to achieve herd immunity. Thirdly explain what shape the supply curve would be given the limited number of suppliers of the vaccine. Note that the cost of providing the vaccine free to the public is borne by the government. This section will require yo
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