Consider the market for wheat where demand is given by: Q=80-4p and supply is given by: Qs = 40 + 4p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 50.00 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=80-4p and supply is given by: Qs = 40 + 4p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 50.00 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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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