Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine.One of the demand curves in the diagram reflects private benefits and the other reflects social benefits.
Refer to the figure above.The dollar value of the external ______ is _____ per vaccine.
A) benefit;$30
B) cost;$20
C) benefit;$20
D) benefit;$75

Question

Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine.One of the demand curves in the diagram reflects private benefits and the other reflects social benefits. 
Refer to the figure above.The dollar value of the external ______ is _____ per vaccine.
A) benefit;$30 
B) cost;$20 
C) benefit;$20 
D) benefit;$75

Quizplus · Accepted Answer

D-1 is the private demand curve and D-2 is the social demand curve.D-2 lies $30 above D-1 as can be seen by the differences in the y-intercepts.

Suppose That a Vaccine Is Developed for a Highly Contagious