The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and

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The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and that the production of gizmos must be 16000 each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the scale of the quantity axis is inthousands.

What is the deadweight loss in the widgetsmarket?

What is the deadweight loss in the gizmosmarket?

Price of widgets Price of gizmos $10 $100 90 Supply Supply 70 60 40 30 Demand Demand 20 10 1 2 3 4 5 6 7 8 9 10 0 2 4 6 8 10 12 14 16 18 20 Quantity of widgets (in thousands) Quantity of gizmos (in thousands)

Posted Date: Jun 21, 2024 08:03 PM

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The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and

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