Question

One of the current policy issues facing the country now is trying to get more people to wear masks to limit the spread of COVID-19. Figure 1 shows the hypothetical private and public benefit for wearing a mask in public. Presumably the personal benefit of wearing a mask is very low since it does not personally protect the mask wearer. On the other hand the public benefit is very high since collective mask wearing will presumably limit the spread of COVID-19. Use figure 1 to answer the following questions ! Figure 1: Social And Private Benefit of Mask Wearing Cost/Benefit 30 26 Private Cost = Social Cost 24 21 18 15 12 9 6 3 Private Benefit Social Benefit 0 15 30 45 60 75 90 105 120 130

Answer 1

30 htlost - soud Cost 21 18 New con 15 9 45 60 75 90 e) mo when there is policy intervention total surplus - area la tbt cad 9x457 (21-9)45+ 1 x 9x45 9x45+ 12x452 445 - 1 X 늘 0 New lost howe