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.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the market for wheat where demand is given by:
Qd = = 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fa6e388-0019-46dc-9506-b6fbaa669d90%2F5c717374-79a5-4fd4-b729-7f0605a9a0dc%2Fo4q1w7o_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the market for wheat where demand is given by:
Qd = = 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.)
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