Figure 5-10

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 5-10.
-Refer to Figure 5-10.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Question

Figure 5-10
  
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 5-10.
-Refer to Figure 5-10.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 is represented by the area of the triangle FEG, which is the difference between the total benefits (represented by the area of the rectangle QFFGQE) and the private benefits (represented by the area of the rectangle PEEF). Therefore, the value of the net gain to society is equal to the area of FEG.

Figure 5-10 Chicken Pox Vaccinations for Toddlers Benefit Society by Protecting Young