Figure 5-6

Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 5-6.What does D₂ represent?

Question

Figure 5-6
  
Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 5-6.What does D₂ represent?

Quizplus · Accepted Answer

D₂ represents the demand curve reflecting marginal social benefits, which is higher than the demand curve reflecting marginal private benefits (D₁) due to the positive externalities generated by the use of the measles vaccination.

Figure 5-6 Figure 5-6 Shows the Market for Measles Vaccinations, a Product