If the quantity of smallpox vaccinations is determined by the market forces of demand and supply,which of the following is most likely to be true?
A)The equilibrium quantity will be too low for efficiency.
B)The equilibrium price and quantity will be too high for efficiency.
C)The equilibrium price will be too low for efficiency.
D)The equilibrium quantity will be too high for efficiency.
E)The equilibrium price and quantity will be efficient.

Question

Quizplus · Accepted Answer

In a market-driven scenario, the quantity of smallpox vaccinations might be lower than what is socially optimal because individuals may not consider the positive externalities (e.g., herd immunity) of vaccination. This leads to underconsumption relative to the socially efficient level, making the equilibrium quantity too low for efficiency.

If the Quantity of Smallpox Vaccinations Is Determined by the Market