Consider the following demand and supply schedules for some agricultural commodity.
TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the deadweight loss that is created is equal to
A)$1000.
B)$2000.
C)$3000.
D)$4000.
E)$5000.

Question

Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the deadweight loss that is created is equal to
A)$1000. 
B)$2000. 
C)$3000. 
D)$4000. 
E)$5000.

Quizplus · Accepted Answer

The Answer of Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Consider the market-clearing equilibrium.If the government then imposes a production quota of 500 units,the deadweight loss that is created is equal to
A)$1000. 
B)$2000. 
C)$3000. 
D)$4000. 
E)$5000.

Consider the Following Demand and Supply Schedules for Some Agricultural