=+h.** Under these new tastes, suppose you only observed the regular demand curve and then used it
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=+h.** Under these new tastes, suppose you only observed the regular demand curve and then used it to calculate deadweight loss while incorrectly assuming it was the same as the MWTP curve. By what percentage would you be overestimating the deadweight loss? (Hint: You again need to evaluate an integral. Note that the integral of 1/1p11 1 p2 2 with respect to p is ln p 2 ln 11 1 p2.)
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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