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Sammy Has a Drone That He Values at $1,500

Question 38

Multiple Choice

Sammy has a drone that he values at $1,500. Dean values the same drone at $2,000. Sammy decides to sell the drone to Dean for $1,800. The government offers a subsidy of $800 to the buyers of drones. Producer surplus is ________ and consumer surplus is ________.


A) $300; $200
B) $300; $1,000
C) $1,100; $800
D) $1,100; $600

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