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 below represents the private demand for the vaccine and the other represents the social demand for the vaccine. The external benefit of each dose is:
A)$70
B)$50
C)$30
D)$20

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 below represents the private demand for the vaccine and the other represents the social demand for the vaccine.  The external benefit of each dose is:
A)$70 
B)$50 
C)$30 
D)$20

Quizplus · Accepted Answer

D1 is the private demand curve and D2 is the social demand curve. D2 lies $20 above D1.

Suppose That a Vaccine Is Developed for a Highly Contagious