1. Look at the area equal to areas 3 5 in Exhibit 7. If there is...
Question:
1. Look at the area equal to areas 3 5 in Exhibit 7. If there is a price floor, this area ends up being a deadweight loss. It is the loss to society of not producing Q1. Are there mutually beneficial trades that exist between Q2 and Q1, and if so, how do you know this?
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