Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine.One of the demand curves in the diagram reflects private benefits and the other reflects social benefits.
Refer to the figure above.Private incentives will lead to _____ people receiving the vaccine at a cost of _____.
A)75;$80
B)75;$50
C)50;$60
D)50;$90

Question

Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine.One of the demand curves in the diagram reflects private benefits and the other reflects social benefits. 
Refer to the figure above.Private incentives will lead to _____ people receiving the vaccine at a cost of _____.
A)75;$80 
B)75;$50 
C)50;$60 
D)50;$90

Quizplus · Accepted Answer

D-1 is the private incentives demand curve.It does not include the social benefits of vaccination.

Suppose That a Vaccine Is Developed for a Highly Contagious