1- In a family gathering conversation (with proper social distancing!) one of your cousins says that he believes everyone should have the non-negotiable right to not wear mask or facial covering even in public and closed areas where there are a lot of people gathered in a place (such as grocery stores). He believes that this should be the case regardless of the higher case fatality and transmissibility of the disease. Using the concepts of contagiousness and externalities in health how you would argue against this believe (2 points)
2- Considering the demand curve and function for the flu shot below, explain the changes to demand curve (shifting right or left) or movement along the demand curve in any of these scenarios, ceteris paribus (6 points)
Demand curve function: Q= 11- 0.1P
a) A research study finds that flu shot can also prevent Pneumonia.
b) A news report says that flu shot can prevent you from enjoying cookies (you are a cookie-lover).
c) Your insurance pays for your flu shot and you don’t need to pay a penny.
d) The out-of-pocket payment for flu shot increases from $12 to $68.
Sample Solution