Multiple Choice
Without restrictions,the market supply curve is horizontal at P = 5,and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market.Subsequently,only 10 taxi cabs are allowed in the market.This results in a deadweight loss of
A) 0.
B) 5.5.
C) 12.5.
D) 25.
Correct Answer:
Verified
Correct Answer:
Verified
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