Q4. Market Failure and Externalities: Chapter 11 (6 marks) Figure-1 shows example of a market for COVID-19 vaccinations, a product whose production as well as consumption generates positive externalities on the global population, society and individuals. Study Figure - 1 to answer the following questions. Figure 1 Price of vaccinations Pe i m A P. E D Quantity of vaccinations (a) Given the current global pandemic and its impact, define and explain positive production and positive consumption externalities in context of COVID-19 vaccination. (1 mark) (b) What does the curve D1 represent in Figure-1? (1 mark) (c) What is the economically efficient output level in Figure-1? (0.5 mark) (d) What does the curve D2 represent in Figure-1? (1 mark) (e) What is the market equilibrium output level in Figure-1? Explain. (1 mark) (f) Define dead weight loss. Which area represents the deadweight loss resulting from producing at the market equilibrium? (1 mark) (9) Why is there a deadweight loss? (0.5 mark)