Explain negative externality. What is it? how does it happen and give an example.
How can negative externality can be internalized.?
Explain Positive externality. What is it? how does it happen and give an example.
How can positive externality can be internalized.?
Take the market for vaccines and construct a graph for the market for vaccine shots.
Show in it the market price and quantity.
Explain how third parties are benefiting from those who consume vaccine shots and how the positive externality can be internalized.
Additionally draw a second graph showing the appropriate shift of the demand curve which will remedy the positive externality.