Yellowstone National Park is in bear country. The National
Park Service, at its Yellowstone Web site, states the following
about camping and hiking in bear country:
Do not leave packs containing food unattended,
even for a few minutes. Allowing a
bear to obtain human food even once often
results in the bear becoming aggressive
about obtaining such food in the future.
Aggressive bears present a threat to human
safety and eventually must be destroyed or
removed from the park. Please obey the law
and do not allow bears or other wildlife to
obtain human food.
What negative externality does obtaining human food
pose for bears? What negative externality do bears
obtaining human food pose for future campers and
hikers?
Q288: Every year at the beginning of flu season, many people,
including the elderly, get a flu shot to reduce their chances
of contracting the flu. One result is that people who do not
get a flu shot are less likely to contract the flu.
a. What type of externality (negative or positive) arises
from getting a flu shot?
b. On the graph that follows, show the effects of
this externality by drawing in and labeling any
additional curves that are needed and by labeling
the efficient quantity and the eff icient price of flu
shots. Label the area representing deadweight loss
in this market.