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Suppose the Market Demand Function in a Certain Market Where

Question 37

Multiple Choice

Suppose the market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P,and the market supply function is Qs = 2.5P - 7.5.How much deadweight loss would there be in this market if the quantity bought and sold was 6,000 units?


A) $0.03
B) $25
C) $500
D) $2,500

Correct Answer:

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