The demand and supply of ethanol are given by QD 8,000 2,000P and QS = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. If the government subsidizes ethanol at $0.30 per gallon, what is the deadweight loss? A) $30 B) $7,800 C) S119 D)$440
The demand and supply of ethanol are given by QD 8,000 2,000P and QS = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. If the government subsidizes ethanol at $0.30 per gallon, what is the deadweight loss? A) $30 B) $7,800 C) S119 D)$440
Chapter1: Making Economics Decisions
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