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Because this plant based treatment is beneficial to society due to its ability to treat malaria patients, the marginal social costs are lower than the marginal private cost. This means that the supply curve on the right represents the Marginal Social Cost with an equilibrium at a lower price and greater quantity, making the market allocatively efficient. If only private cost is taken into account, the market is inefficient because it is producing a lower quantity for a higher price when what the people need is a greater quantity.

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Marginal Social Cost is greater than Marginal Private Cost, causing the supply curve to move. This causes market failure to occur as resoures are not being allocated effectively.

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Since Marginal social cost is greater than marginal private cost, market failure occurs as resources are not being allocated efficiently. The distance between the two curves demonstrates the benefits to society of the new drug

The socially optimum position for this market is where marginal social cost is equal to marginal social benefit. However, goods are being traded at the point where marginal private cost is equal to marginal social benefit.

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Marginal social cost is greater than marginal private cost, and resources are allocatively inefficient. The product is merit good, however, so this results in supply shifting from MSC to MPC- making the resources allocated more efficiently (i.e. where marginal private cost equals marginal social benefit). The allocation of resources reaches the social optimum when marginal social cost equals marginal social benefit.

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Market failure is present in the original graph as the Marginal social cost is greater than the Marginal Private cost, resulting in allocative inefficiency. As the product is a merit good, it would be more socially beneficial for more of the product to be produced (as there are positive externalities of production). This would result in a shift of the graph from MPC to MSC. As supply shifts from MPC to MSC, resources are allocated more efficiently as the graphs move to a new equilibrium, and the supply also reaches a social optimum where the product is consumed in greater quantities at a lower price, resulting in more positive externalities on society.

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Marginal Social Cost will be greater than the MPC, it moves the S curve, rendering the market a failure, as resources are no longer allocatively efficient, though the distance between the two illustrates the positive externality exerted by the plant-based treatment. The production of the drug provides great spillover effects towards society, and so does the consumption. Where MSC = MSB that is where society reaches its optimum equilibrium, however where MPC=MSB that is where resources are being allocated efficiently. The positive spillover benefits that the drugs have will cause society to want more quantity produced at lower prices, thus explaining the changes in price and quantity supplied. To allow this to happen, the government could take several steps to intervene, e.g. subsidies. This allows the prices to be shifted, and consumers to demand more due to the law of demand.

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The MSC is bigger than MPC which makes it a market failure. However, since the MSC is below the MPC the plant based treatment is a merit good. This is a market failure because resources cannot be allocated effectively to produce this good.

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MSC ( Marginal Social Cost ) will be less than the MPC (Marginal Private Cost) since it's a merit good which is a positive production externalities. As it gives a positive impact where the society cost less than the government the product is considered as a merit good. However the price for new plant-based treatment is really expensive therefore the government should intervene by giving subsidize and grants so then the treatment can be produced more making the market allocatively efficient.

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The new method is efficient and does not have any negative externalities similar to those when DDT is used. The new plant based treatment, which is a highly effective method, is a substitute for DDT. The Marginal Social Cost will be less because the society wants to produce more with reduced cost. Therefore new equilibrium will reach with increased quantity demanded and decreased price. Therefore, the government will intervene in mass production.

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It is a merit good and will have more social benefit than its cost of production. So the marginal private cost is greater than the marginal social cost.

On the diagram we can see the msc curve cut the msb curve at a lower price and a larger quantity than mpc curve. So the social optimum equilibrium is at a lower price and greater quantity compared to the current equilibrium point.