7. If Sandwiches To Go, Inc., buys all the sandwich producers and cuts production to 100 sandwiches...
Question:
7. If Sandwiches To Go, Inc., buys all the sandwich producers and cuts production to 100 sandwiches an hour, what is the deadweight loss that is created? If Sandwiches To Go, Inc., rations sandwiches to two per person, by what view of fairness would the allocation be unfair?
Table 2 Price
(dollars per bag)
Quantity demanded before flood Quantity demanded during flood Quantity supplied
(thousands of bags)
0 40 70 0 1 35 65 5 2 30 60 10 3 25 55 15 4 20 50 20 5 15 45 25 6 10 40 30 7 5 35 35 8 0 30 40
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