Question
Suppose the market demand for ethanol is QD = 60-5P and market supply of ethanol is QS = 20+15P. If the government institutes a
Suppose the market demand for ethanol is QD = 60-5P and market supply of ethanol is QS = 20+15P. If the government institutes a price ceiling of $1.40, what is the effect on economic efficiency? The price ceiling will create deadweight loss of $. (Enter your response rounded to two decimal places.)
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
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