7135/2 Economics Jun 2020 Quiz | AQA AS Level MCQ
In the diagram below, D$_1$ and S$_1$ are, in the absence of government intervention, the market demand and supply curves for a vaccine. The demand curve D$_2$ shows how much of the vaccine would have been demanded if the external benefits could have been captured by the market.
The diagram illustrates that there is a misallocation of resources because in a free market