The Table below shows the prices and supply and demand for flu shots in millions. Not taking into account the benefits from flu shots, what are the equilibrium price and quantity from flu shots? Now suppose that every flu shot generates $10.00 in external benefits (from others being likely to get sick). Show how this positive externality affect the curve (draw a new curve on the graph). Taking into account external benefits, what would be the new equilibrium price and quantity of the flu shot?

Pricedemand flu shots(millions) supply flu shots(millions)

1082

2046.5

303.53.5

404.56.5

5037

6028