The measles vaccine provides both private benefits to individuals and positive external benefits to other members of society. In equilibrium:

Question

Quizplus · Accepted Answer

Since the measles vaccine provides positive external benefits to other members of society, the private demand for the vaccine may not fully take into account these benefits. This results in a market failure, where the socially optimal quantity of the vaccine is higher than the private quantity demanded. Therefore, too few doses of the vaccine would be produced in the absence of government intervention.

The Measles Vaccine Provides Both Private Benefits to Individuals and Positive