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Flam- 1.3 131le vacdnatnd he diagram shows the private and social demand curves for vaccination against childhood communicable diseases. he market price of a vaccine
Flam- 1.3 131le vacdnatnd "he diagram shows the private and social demand curves for vaccination against childhood communicable diseases. "he market price of a vaccine dose is $20 per dose and C represents the number of children vaccinated. CM represents the quantity demanded at price $20 and CE at $5. The efficient level of vaccination is O A} CE because, at $20 per dose, the quantity demanded determined from the social demand curve yields the level CE. 0 B) CE because since the positive externalities can only be captured by subsidizing each dose at $15 and thus inducing families vaccinating children at this efficient level. O C] CM because free markets must not be meddled with. O D) CE because a dose costs $5. 0 E) CM because the price $20 eliminates the negative externalities from the difference CE minus CM
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