If Farmers Decide Individually Whether or Not to Vaccinate Their

question 81

Multiple Choice

If farmers decide individually whether or not to vaccinate their cattle against mad cow disease, which of the following is true?

• A)The equilibrium quantity is too low for efficiency.
• B)The equilibrium price and quantity are too high for efficiency.
• C)The equilibrium price is efficient.
• D)The equilibrium quantity is too high for efficiency.
• E)The equilibrium price and quantity are efficient.

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Definitions:

Willing Supplier

An entity or individual that is ready and able to provide goods or services at a certain price.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive in the market.

Market Price

The ongoing value at which a commodity or service is offered for buy or sell in a trading environment.

Producer Surplus

The gap between the amount sellers are prepared to accept for a product and the actual selling price they obtain.