Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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? (include graph)

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

1082

2046.5

303.53.5

404.56.5

5037

6028

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

What Every Environmentalist Needs To Know About Capitalism

Authors: Fred Magdoff, John Bellamy Foster

1st Edition

1583672419, 9781583672419

More Books

Students also viewed these Economics questions

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago