-The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the deadweight loss is $100.
B) the deadweight loss is $75.
C) the deadweight loss is $50.
D) there is no deadweight loss.

Question

-The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the deadweight loss is $100. 
B) the deadweight loss is $75. 
C) the deadweight loss is $50. 
D) there is no deadweight loss.

Quizplus · Accepted Answer

The Answer of 
-The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day
A) the deadweight loss is $100. 
B) the deadweight loss is $75. 
C) the deadweight loss is $50. 
D) there is no deadweight loss.

-The Figure Above Shows the Market for Milk