Suppose the market demand for ethanol is QD=60-10P and market supply of ethanol is QS =20+10P If the government institutes a price ceiling of $1.20, what is the effect on economic efficiency? The price ceiling will create deadweight loss of $ (Enter your response rounded to two decimal places.)
Suppose the market demand for ethanol is QD=60-10P and market supply of ethanol is QS =20+10P If the government institutes a price ceiling of $1.20, what is the effect on economic efficiency? The price ceiling will create deadweight loss of $ (Enter your response rounded to two decimal places.)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section19.4: The Relationship Between Taxes And Elasticity
Problem 4ST
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Transcribed Image Text:Suppose the market demand for ethanol is
QD=60-10P
and market supply of ethanol is
QS =20+10P
If the government institutes a price ceiling of $1.20, what is the effect on economic efficiency?
The price ceiling will create deadweight loss of $
(Enter your response rounded to two decimal places.)
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