Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation consider a competitive markket with linear demand and supply curves. if the subsidy of $1 perunit causes the volume of trade increases by 50 units relative to equilibrium, then thedeadweight loss caused by subsidy is equal to

Deadweight Loss: Deadweight loss is the cost to the society which is created due to the market…

Answered: consider a competitive markket with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A local insurance company offers both home and auto insurance to four types of customers with the reservation prices listed in the figure below. Assume for simplicity that there is only one consumer of each type. Home Auto Bundle Customer A $90 $67 $157 Customer B Customer C Customer D $117 $87 $204 $103 $77 $180 $83 $52 $135 If the firm were to sell home and auto insurance separately, it would charge $83 for home insurance, $52 for auto insurance, and earn a combined revenue of $540. Determine the revenue the firm would receive if it used a pure bundle. Comparing the revenue of the pure bundle to the revenue of selling home and auto insurance separately, we can conclude that the reservation prices of the consumers must: O A. have no correlation B. be positively correlated C. be negatively correlated D. be serially correlated
U(I) = sqrt(161) I is annual income Job 1 has 0.3 of earning $24000 Job 2 has 0.7 of earning $57000 How much is this person willing to pay to insure against risky income?
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consider a competitive markket with linear demand and supply curves. if the subsidy of $1 per unit causes the volume of trade increases by 50 units relative to equilibrium, then the deadweight loss caused by subsidy is equal to