Consider the following demand and supply schedules for some agricultural commodity.
-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) $1 000.
B) $5 000.
C) $3 000.
D) $4 000.
E) $2 000.
Correct Answer:
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