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:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter27: Markets And Government

Section: Chapter Questions

Problem 4E

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QUESTION 4 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, P is 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=0.5Q. Then, social marginal benefit (SMB) is SMB = "Q
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