Market (inverse) demand for measles vaccine is given by P= 100-20. Market (inverse) supply for measles vaccine is given by P=10+0.50. Here, Pis the unit price of measles vaccine and Q denotes quantity. Suppose there are positive externalities from consuming measles vaccines. Marginal external benefit is given by MEB=0.50. The size of deadweight loss from the market equilibrium is 0.5x( 310.5×

Market (inverse) demand for measles vaccine is given by P= 100-20. Market (inverse) supply for measles vaccine is given by P=10+0.50. Here, Pis the unit price of measles vaccine and Q denotes quantity. Suppose there are positive externalities from consuming measles vaccines. Marginal external benefit is given by MEB=0.50. The size of deadweight loss from the market equilibrium is 0.5x( 310.5×

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 8QP

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