Figure 4-22

Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease. Thus, the social benefits of chicken pox vaccinations exceed the private benefit for any quantity of vaccinations as illustrated in Figure 4-22.
-Refer to Figure 4-22.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Question

Figure 4-22
  
Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease. Thus, the social benefits of chicken pox vaccinations exceed the private benefit for any quantity of vaccinations as illustrated in Figure 4-22.
-Refer to Figure 4-22.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Quizplus · Accepted Answer

The net gain to society as a result of subsidizing chicken pox vaccinations is represented by the area under the demand curve (QF) and above the supply curve (PE) up to the quantity of vaccinations (QE) provided. This area is equal to the value of the net gain to society, which is the area of FEG. Therefore, choice C is the correct answer.

Figure 4-22 Chicken Pox Vaccinations for Toddlers Benefit Society by Protecting Young