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Consider the market for meningitis vaccinations.

a) Why might meningitis vaccinations exhibit positive externalities in consumption?

b) Draw a graph of the market for vaccinations, labeling the demand curve, the marginal social benefit curve, and the supply curve.

c) Indicate the market equilibrium level of output and the optimal level of output. Give an intuitive explanation for why these quantities differ.

d) On your graph, shade the area corresponding to the deadweight loss associated with the market equilibrium quantity.

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please see the attached file for the complete solution.

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