Several policy options have been proposed to encourage more people to be vaccinated against the flu. The diagram below shows how a subsidy from government to consumers might be used to achieve this goal. A. In the diagram, identify the lines that express the Marginal Social Cost, Marginal Private Cost, Marginal Private Benefit, and Marginal Social Benefit. Price per does (P) Number of flu vaccines B. Using the diagram, indicate the per dose subsidy paid by the government, and show how the subsidy will affect the price paid by consumers and the price received by manufacturers of the vaccine.

Several policy options have been proposed to encourage more people to be vaccinated against the flu. The diagram below shows how a subsidy from government to consumers might be used to achieve this goal. A. In the diagram, identify the lines that express the Marginal Social Cost, Marginal Private Cost, Marginal Private Benefit, and Marginal Social Benefit. Price per does (P) Number of flu vaccines B. Using the diagram, indicate the per dose subsidy paid by the government, and show how the subsidy will affect the price paid by consumers and the price received by manufacturers of the vaccine.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose that demand for anchovy pizza is given by PD = 50 – Q", and the supply of anchovy pizza is…

A: External cost refers spill-over cost of a good on society who is neither a consumer nor a producer.

Q: P SB E H F III G 50 80 120 150 Consider the market for education. Education has an external benefit.…

A: Externalities are the side effects which are borne by the parties who are not directly involved in…

Q: Suppose a vaccine benefits not only the recipient of the vaccine, but also provides an external…

A: External benefits :- A benefit received by people other than the market's consumers or producers is…

Q: He bought a cell for $579. He doesn't like it anymore and posts it on instagram. He is willing to…

A: Consumer surplus is defined as the net benefit to the consumers which is measured as the difference…

Q: O wipe and clean your hands, which prevents the spread of germs to others. If the government e to…

A: A subsidy can be described as support given by the government of the country or can be provided by…

Q: discuss the argument that education should be subsidized because it creates a positive externality

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Price ($/dose) 1101 Suppose that a vaccine is developed for a highly contagious strain of flu. he…

A: The consumer has the desire to buy a product determines the demand of the commodity. If the demand…

Q: The coronavirus pandemic has drawn attention to the importance of vaccinations (and other health…

A: Hey, thanks for the question. Since you have posted multiple questions we will answer one the first…

Q: Which of the following represents a social benefit? Group of answer choices The satisfaction of…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: Give typing answer with explanation and conclusion Which of the following policies could help…

A: Government policy alludes to a plan, or technique picked by the government to resolve a specific…

Q: Most countries today have subsidised the provision of education. Consider an imaginary country,…

A: Note:- Dear learner you have posted a question with multiple sub parts, as per our policy we will…

Q: Provide a subsidy for the vaccination Government produces and operates vaccination centers, where…

A: Subsidies are a type of government intervention in which the government pays suppliers to lower…

Q: The chart above shows the market for polio vaccine in Pakistan. This vaccine provides external…

A: a. If there is a competitive market and no government intervention, then the amount will be…

Q: Externalities Application-no credit given for answers based outside of course sources Part 2 (16…

A: It appears that the graph you mentioned shows Seher City's supply and demand curve for potatoes. The…

Q: Refer to Table 13-9. What is variable cost when output equals 30 units? Select one: O a. $90.00 O b.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The National Flood Insurance Program (NFIP) provides flood insurance for homeowners and small…

A: Moral hazard: - moral hazard is the situation in which a person or an institution increases exposure…

Q: The table below describes the market for higher education. Higher education confers positive…

A: A positive externality is a benefit that is enjoyed by a third party as a result of an economic…

Q: Some economists argue that early child care generates an external benefit to society. Consider the…

A: Socially optimal output can be achieved when MSB = MSC

Q: The local government has decided that because children's health has large external benefits, it will…

A: When market demand and supply forces are not in equilibrium, the cost to society born due to such…

Q: If provision of vaccines is left to a private market with no adjustment for the positive externality…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: Consider the education market of a country which is perfectly competitive. The demand equation for…

A: Externalities are the costs and benefits that are derived from an economic transaction by a third…

Q: o i

A: A negative externality is a cost being suffered by a third party due to a consequence of an economic…

Q: The cost (supply) of each "unit" of NPR (National Public Radio) is P-9. Derek's valuation for each…

A: Given: NPR: P= 9 Derek's demand: PD = 20-2Q Kim's demand: PK = 10-Q Total Market demand: Pdemand =…

Q: The following graphs illustrate how positive externalities can be generated by both the production…

A: Step 1: Step 2: Step 3: Step 4:

Q: What would likely be the impact on health. care costs if a government implements price controls on…

A: The issue is to evaluate the logical effect of government-forced cost controls on drugs on general…

Question

C. How would you calculate: (1) the total amount of subsidy incurred by
the government to socially efficient allocate?

7. The Role of Government: Subsidy and the Flu vaccine
Several policy options have been proposed to encourage more people to
be vaccinated against the flu. The diagram below shows how a subsidy
from government to consumers might be used to achieve this goal.
A. In the diagram, identify the lines that express the Marginal Social Cost,
Marginal Private Cost, Marginal Private Benefit, and Marginal Social
Benefit.
Price per does (P)
Number of flu vaccines
B. Using the diagram, indicate the per dose subsidy paid by the
government, and show how the subsidy will affect the price paid by
consumers and the price received by manufacturers of the vaccine.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the above graph. Is there an externality present in this market? If so, what kind? No, there is no externality. Yes, a negative externality. Yes, a positive externality.
How to draw the market equilibrium quantity of the vaccine diagram?
solve the following?
In his testimony before the house ways and means health subcommittee, Robert Reischauer stated that Congressional budget office research concluded that price controls could severely limit the quality and quantity of medical care in the United States. He also argued that the only way to control medical care spending is by imposing global healthcare budgets at the national level. Explain how price controls can be bad and global budgets good.
Q35 Which of the following phenomena is NOT an example of market failure? a. A positive externality. b. Diminishing marginal returns. c. Moral hazard. d. Asymmetric information. e. Public goods.
What exactly is a Pigovian tax? Give some instances of how the Pigovian tax can be used to tackle environmental issues.
#9. A safe and effective coronavirus vaccine has positive externalities. Is it efficient for the government to provide this vaccine to everyone for free? a. Yes. Goods with positive externalities should always be free. b. Uncertain. Goods with positive externalities should be subsidized, but making them free is not necessarily efficient. c. No. According to the First Fundamental Welfare Theorem, the market will provide the efficient amount of vaccines on its own. с. d. No. Goods with positive externalities should be taxed.
Most countries today have subsidised the provision of education. Consider an imaginary country, Gondolin. Gondolin pays a subsidy of $10 000 per year to each student enrolled in tertiary education.(a) Depict, with the help of a figure, the initial market for tertiary education in Gondolin, assume that: 1) education was left to the competitive free market; 2) the marginal private benefit is equal to the marginal social benefit; 3) the marginal private cost is equal to the marginal social cost. Now describe, using the help of the figure, the effect of the government subsidy on the price and quantity traded of tertiary education, where the X axis of the figure should be the quantity of students enrolled in tertiary education. You do not need to use actual numbers – focus on the direction of change in price and quantity traded caused by the subsidy.(b) Identify the area of the figure you drew in (a) that depicts the total size of the subsidy paid by the government to the students enrolled…
During the time of a pandemic and the existence of a highly contagious corona-virus, many scientists recommended wearing a mask. Let's assume that wearing a mask can limit the spread of the virus. Is wearing a mask an externality? Positive or negative? How about not wearing a mask? Explain your answers.
There are two consumers of mosquito abatement (a public good), Dave and Lilly. Dave’s benefit from mosquito abatement is given by ??? = 100 − ?, where Q is the quantity of mosquito abatement. Lilly’s benefit is given by ??? = 60 − ?.a. Calculate the total marginal benefit, ???.b. Suppose that mosquito abatement can be provided at a marginal cost of ?? = 2?. Find the socially optimal level of abatement. c. If mosquito abatement is privately supplied, what quantity will be supplied by Dave, and what quantity will be supplied by Lilly? Briefly explain.
Use the table below to answer the questions: Quantity Supplied (Private Supplied (Social Cost only) 12,000 14,000 17,000 20,000 24,000 Quantity Quantity Demanded Price 19,000 14,000 9000 5000 1000 $50 $55 $60 $65 $70 Cost) 6000 7500 9000 11,000 14,000 (a) Find the equilibrium price, assuming sellers ignore negative externalities. (b) Find the equilibrium quantity, assuming sellers ignore negative externalities. (c) Find the optimal price, including external costs. (d) Find the optimal quantity, including external costs.
I chose option D and got this wrong. I thought that when you had a positive externality The demand curve move to the right. Wouldn’t this mean that the level of output and the price would be greater than the free market ones? can you explain how my answer is wrong? What is correct?