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.If the flu vaccine is provided by private markets,deadweight loss will be _______.
A) zero
B) $375
C) $500
D) $1,125

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.If the flu vaccine is provided by private markets,deadweight loss will be _______.
A) zero 
B) $375 
C) $500 
D) $1,125

Quizplus · Accepted Answer

Deadweight loss is the triangle between price of 80 and price of 50 and between quantity of 50 and quantity of 75.

Suppose That a Vaccine Is Developed for a Highly Contagious