Figure 5-1
Figure 5-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.The market equilibrium price is

Question

Figure 5-1
  Figure 5-1 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-1.The market equilibrium price is

Quizplus · Accepted Answer

The market equilibrium price is where the marginal private benefit (MPB) equals the market demand curve (D) and the marginal social benefit (MSB) curve. This occurs at a price of $20, where the quantity demanded is 60. At any price lower than $20, the quantity demanded would exceed 60, and the MSB would be greater than the MPB, indicating that additional vaccinations would provide greater benefits to society as a whole than to individual buyers. Therefore, the answer is C, which represents the market equilibrium price.

Figure 5-1 Figure 5-1 Represents the Market for Vaccinations. Vaccinations