Suppose That Flu Shots Create a Positive Externality Equal to $9

question 60

Multiple Choice

Suppose that flu shots create a positive externality equal to $9 per shot. Further suppose that the government offers a $9-per-shot subsidy to producers. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced?

• A)They are equal.
• B)The equilibrium quantity is greater than the socially optimal quantity.
• C)The equilibrium quantity is less than the socially optimal quantity.
• D)There is not enough information to answer the question.

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pertains to the period of adulthood roughly between the ages of 45 and 65, often characterized by certain life and psychological developments.

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A relationship, typically romantic or platonic, that has endured longer than any other in a person's life.

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A partner in a marriage or committed relationship, offering emotional, social, and sometimes financial support to one another.