Suppose Lou's demand for good X is given by XL =78-P/7

and Dora's demand for good X is given by

XD = 100 -P/5

where x; denotes the quantity demanded by person i, i=L, D and P denotes the price of the good. Now suppose good X is not sold in stores. You have a total 38 units of good X and wish to divide between Lou and Dora. Determine the efficient allocation of this amount. Then calculate the efficiency loss of the allocation where each person gets half this amount, i.e., gets 38/2 and enter the value of the efficiency loss below.

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