Suppose the demand function for the product is Qd = 65,800 – 1,200P and the supply...

Suppose the demand function for the product is Qd = 65,800 – 1,200P and the supply function is Qs = 4,000P – 20,000. Suppose also that there is a price floor of 20 dollars. Using a graph similar to question 3 and the information provided, what is the deadweight loss (DWL) in the economy?

A.DWL = $10,500

B. DWL = $9,555

C. DWL = $11,555

D.DWL = $12,000

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Expert Solution

Rahul Sunny answered 1 year ago

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