Suppose That a Vaccine Is Developed for a Highly Contagious

question 110

Multiple Choice

Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine. At the private market equilibrium, the deadweight loss is ________ per day.

• A)$0
• B)$125
• C)$250
• D)$500

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Definitions:

Independence

The state or quality of being self-governing and free from outside control or support in making decisions.

Arbitrage

The search for deals on production factors across geographic boundaries.

Semiconductor Manufacturer

A company involved in the production of semiconductors, crucial components used in electronic devices to control electrical current.

Germanium

A chemical element with the symbol Ge and atomic number 32, used as a semiconductor in electronics.