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 socially optimal quantity of the vaccine is ________ doses per day.
A)50
B)75
C)100
D)125

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 socially optimal quantity of the vaccine is ________ doses per day.
A)50 
B)75 
C)100 
D)125

Quizplus · Accepted Answer

D2, the social demand curve, crosses the supply curve at 100 units per day.

Suppose That a Vaccine Is Developed for a Highly Contagious