The annual demand for flu shots from students and employees at Upstate University is shown in the graph below. Assume that the marginal cost of providing flu shots is $4 per shot. Student and employee...

Extracted text: The annual demand for flu shots from students and employees at Upstate University is shown in the graph below. Assume that the marginal cost of providing flu shots is $4 per shot. Student and employee health insurance does not cover flu shots. 2$ 7 6 4 2 1 100 200 300 400 500 600 Flu shots A. If the price of a flu shot is $4, how many flu shots are purchased? Quantity: A flu shot reduces not only the recipient's chance of getting the flu but also the chance that the recipient will pass the flu on to someone else. If reduced risk to others has a value of $2 per shot, what is the optimal quantity of flu shots? В. Quantity: Explain, using the graph: Because of the additional benefits to the university community, the health center wants to encourage more students and staff to get flu shots and has decided to offer them for free. Compared to the former price of $4, does this policy improve efficiency? С. O Yes O No Explain, using your graph (be specific):