Refer to Figure 3-5. At a price of 15, the quantity sold A) is ...

[geodog55]

Refer to Figure 3-5. At a price of 15, the quantity sold
 
  A) is 2 units. B) is 4 units.
  C) is 6 units. D) cannot be determined.

Question 2

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.
 
  What will be an ideal response?

[joshraies]

Answer to Question 1

A

Answer to Question 2

An externality is a benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service. Someone who receives a meningitis vaccination is protecting not just himself or herself from the disease, but also reduces the chances that people who have not been vaccinated will contract the disease. In this case, receiving the vaccination provides a positive externality.