Arrange the following steps to analyze the effects of a positive externality on market equilibrium: A) Identify the marginal private benefit and marginal social benefit. B) Determine the initial equilibrium price and quantity. C) Assess the impact of the positive externality on demand. D) Propose government interventions to achieve a socially optimal outcome.

To analyze the effects of a positive externality on market equilibrium, start by determining the initial equilibrium price and quantity, which gives you a baseline for how the market operates without any external factors. Next, identify the marginal private benefit and the marginal social benefit, as this helps you understand how the benefits of a good or service extend beyond just the individual consumer to society as a whole. After that, assess how the positive externality affects demand, since increased social benefits can shift the demand curve to the right, leading to a higher quantity and possibly a higher price in the market. Finally, propose government interventions, like subsidies or public awareness campaigns, to encourage more production or consumption, ensuring that the market reaches a socially optimal outcome where both private and social benefits are maximized. For example, if a company produces a new vaccine that not only protects individuals but also reduces disease spread, understanding these steps can help ensure that enough people receive the vaccine to benefit society overall.