3. Vaccinations reduce other people\'s exposure to communicable diseases. Suppos

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3. Vaccinations reduce other people's exposure to communicable diseases. Suppose the market demand for vaccinations is Q 100-10P Where Q is millions of vaccinations and P is the price per vaccination. The market is competitive and the supply function is Q 32P a. What is the market equilibrium? Calculate and sketch your answer. Do you think the market allocation is efficient? Why or why not? If not, what type of market failure is this? Be as precise as you can b. Suppose the marginal external benefit of vaccinations are MEB 8 -.15Q. What is the efficient price and quantity? Calculate and sketch your answer. c. What is the DWL of the market allocation? Calculate and Illustrate. d. What is the optimal Piguovian subsidy? What is the incidence of the subsidy?

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3. Vaccinations reduce other people's exposure to communicable diseases. Suppos

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