(Answered) The demand for vaccinations is given by the following p 200

Management Studies

The demand for vaccinations is given by the following: p =200 - Q. The supply of vaccinations is given by: p=50+Q. Further, vaccinations provide an external benefit (b) equal to b=0.5*Q. If a Pigouvian subsidy is used to ensure that the efficient level of vaccinations occur, the value of that subsidy will equal:

a. 0.

b. 20.

c. 30.

d. 50.

e. 100.

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