Suppose That Flu Shots Create a Positive Externality Equal to $12

question 64

Multiple Choice

Suppose that flu shots create a positive externality equal to $12 per shot.Further suppose that the government offers a $15 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.

---

Definitions:

R

A symbol commonly used to represent resistance in electrical circuits.

RC Parallel Circuit

A circuit configuration consisting of a resistor (R) and a capacitor (C) connected in parallel, which influences the charging and discharging time constants.

R

Symbol commonly representing resistance in electrical equations, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit that consists of resistors (R) and capacitors (C) connected alongside each other in parallel, allowing for AC filtering or timed circuits.