Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

this is my question. Utopia doctors immunize children against measles, a highly contagious and potentially deadly virus. The demand and supply curves for the immunization

this is my question.

image text in transcribed
Utopia doctors immunize children against measles, a highly contagious and potentially deadly virus. The demand and supply curves for the immunization are given by the following equations. Demand: Q =200 - P thousand immunizations per year Supply: Q -9.5P - 75 thousand immunizations per year but the social marginal benefit (SMB) is given by the following equation Q = 200- 0.4 x SMB thousand immunizations per year and the private marginal cost and social marginal cost are identical. 18. If the market is left unregulated, the market equilibrium level of immunization is [ Answer18 ] thousand immunizations per year. 19. The total economic surplus to the society from the market equilibrium level of immunization is [ Answer19 ] thousand dollars per year. 20. The socially efficient level of immunization is [ Answer20 ] thousand immunizations per year. 21. The total economic surplus to the society at the socially efficient level of immunization is [ Answer21 thousand dollars per year. 22. Suppose the government decides to address the inefficiently low rate of immunization by paying doctors for every immunization. That is, the cost of immunization to the general public is zero. The total economic surplus to the society with such publicly-paid immunization is [ Answer22 ] thousand dollars per year. 23. If, instead, the government applies a per unit subsidy on immunization to achieve the socially efficient level, it should implement a per unit subsidy of [ Answer23 ] dollar(s) per immmunization. 24. This per unit subsidy will cost the government a total of [ Answer24 ] thousand dollars of subsidy expenditure per year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Modern Principles of Economics

Authors: Tyler Cowen, Alex Tabarrok

3rd edition

1429278390, 978-1429278416, 1429278412, 978-1429278393

Students also viewed these Economics questions