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A major auto insurer, wanting to encourage better habits in its drivers, decides to start offering a rate discount to drivers who attend a three-day
A major auto insurer, wanting to encourage better habits in its drivers, decides to start offering a rate discount to drivers who attend a three-day driving skills workshop. This incentive shifts the demand curve for the workshops from D1 to D2. What region of the graph represents the deadweight loss that is eliminated by the change? Use the area tool to outline the region.
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