If the flu vaccine is provided by private markets,deadweight loss will be _______.
A) zero
B) $375
C) $500
D) $1,125
E) $2,250

Question

Quizplus · Accepted Answer

If the flu vaccine is provided by private markets, there will be deadweight loss, as some people will not be willing or able to pay the market price for the vaccine. The deadweight loss is equal to half the area of the triangle formed by the supply and demand curves, and is equal to $375 in this case.

If the Flu Vaccine Is Provided by Private Markets,deadweight Loss