The above figure shows the demand and supply curves in the market for milk. If the government imposes a quota at 500 gallons, calculate the deadweight loss
What will be an ideal response?
DWL = .5(4 – 2 )(1000 – 500 ) = 500
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According to Keynes, a shift in liquidity preference is
a. a shift in the money demand schedule drawn against the interest rate as the level of income changes. b. a change in the amount of money demanded for given levels of the interest rate and income. c. a shift in individuals' portfolios away from bonds and toward holding an increased amount of money for given levels of the interest rate and income. d. Either a or c e. all of the above
The South suffered from a labor shortage immediately after the Civil War (1861–1865) mostly because
(a) freed slaves worked fewer hours. (b) freed slaves moved North. (c) Southern agriculture became mechanized. (d) Southern industry attracted workers away from agriculture.