Question
Your consulting firm has been contracted by the government of San Escobar to provide recommendations regarding influenza immunizations. Currently, the government of San Escobar does
Your consulting firm has been contracted by the government of San Escobar to provide recommendations regarding influenza immunizations. Currently, the government of San Escobar does not intervene in the market for flu immunizations in any way and the market is best characterized as perfect competition. Assume that there is an equal number of older adults (+65 years old) and younger adults (18-22 years old) living in San Escobar. Assume also that each citizen buys their own immunization. Flu can affect anyone. The same vaccination is given to all age groups and equally effective for each age group.
What financial intervention would you recommend the government to use to bring the rates of immunization to socially optimal levels?(previous knowledge, rate of immunization below social optimal, young adults (18-22) interact (face-to-face) with approximately 53 other people each day, while adults over the age of 65 interact (face-to-face) with approximately 5 other people each day. ) Explain the mechanism through which this intervention works. Would this intervention be the same in each age group? If no, how would it differ between the age groups and why?
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