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Freedonia has suffered from periodic epidemics of Economitis, a highly-contagious childhood disease that can have debilitating effects in 1/1,000 people who contract it. There is

Freedonia has suffered from periodic epidemics of Economitis, a highly-contagious childhood disease that can have debilitating effects in 1/1,000 people who contract it. There is a vaccine that protects against most (but not all) cases of Economitis, but the injection is painful for two days. The disease is also more common among people who ride bicycles (though no one knows why). The government of Freedonia is considering making the immunization free for all Freedonian families with incomes below the Freedonian household median income. Would this plan make economic sense? How would it affect immunization rates and patterns? The International Health Organization has proposed a program that would immunize almost everyone in the world against Economitis, eliminating the disease completely. How would that affect the cost of Economitis in Freedonia?

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