It has been estimated that the herd immunity threshold for the H1N1 flu of 2009 was 25% but that for the H1N1 flu of 1918 it was 74%. In most years, the herd immunity threshold for the flu is around 50%. The herd immunity threshold is a function of the contagiousness of the flu strain and the effectiveness of the flu shot. There was no flu shot in 1918, the herd immunity in 1918 came from people having had the flu and subsequently having immunity. c. What subsidy per vaccine would be necessary in order for Q* percent of the population to choose to be fully vaccinated? (Assume that individuals will respond to monetary incentives - as we discussed in class, vaccines may be a case where people will not respond to monetary incentives.) Explain in words and graphically.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
It has been estimated that the herd immunity threshold for the H1N1 flu of 2009 was 25%
but that for the H1N1 flu of 1918 it was 74%. In most years, the herd immunity threshold
for the flu is around 50%. The herd immunity threshold is a function of the
contagiousness of the flu strain and the effectiveness of the flu shot. There was no flu
shot in 1918, the herd immunity in 1918 came from people having had the flu and
subsequently having immunity.
Transcribed Image Text:It has been estimated that the herd immunity threshold for the H1N1 flu of 2009 was 25% but that for the H1N1 flu of 1918 it was 74%. In most years, the herd immunity threshold for the flu is around 50%. The herd immunity threshold is a function of the contagiousness of the flu strain and the effectiveness of the flu shot. There was no flu shot in 1918, the herd immunity in 1918 came from people having had the flu and subsequently having immunity.
c. What subsidy per vaccine would be necessary in order for Q* percent of the
population to choose to be fully vaccinated? (Assume that individuals will
respond to monetary incentives - as we discussed in class, vaccines may be a case
where people will not respond to monetary incentives.) Explain in words and
graphically.
Transcribed Image Text:c. What subsidy per vaccine would be necessary in order for Q* percent of the population to choose to be fully vaccinated? (Assume that individuals will respond to monetary incentives - as we discussed in class, vaccines may be a case where people will not respond to monetary incentives.) Explain in words and graphically.
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