Consider the market for wheat where demand is given by: Q° = 80 - 2p and supply is given by: Q° = 40 + 4p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 56.66 units of wheat can be supplied by firms in the market. The amount of the deadweight loss caused by the market failure is $ (Enter your answer rounded to the nearest penny and as a positive number.)
Consider the market for wheat where demand is given by: Q° = 80 - 2p and supply is given by: Q° = 40 + 4p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 56.66 units of wheat can be supplied by firms in the market. The amount of the deadweight loss caused by the market failure is $ (Enter your answer rounded to the nearest penny and as a positive number.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the market for wheat where demand is given by:
Q° = 80 - 2p
and supply is given by:
Q = 40 + 4p.
Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 56.66 units of wheat can be supplied by firms in the market.
The amount of the deadweight loss caused by the market failure is $
(Enter your answer rounded to the nearest penny and as a positive number.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe82e4046-c1d3-4160-955c-ab4d6d8e8356%2Fbe5e361a-169e-415a-8ecd-e3ef0148e3d7%2F1xeny8m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the market for wheat where demand is given by:
Q° = 80 - 2p
and supply is given by:
Q = 40 + 4p.
Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 56.66 units of wheat can be supplied by firms in the market.
The amount of the deadweight loss caused by the market failure is $
(Enter your answer rounded to the nearest penny and as a positive number.)
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