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Consider a Perfectly Competitive Market with Inverse Market Supply

Question 24

Multiple Choice

Consider a perfectly competitive market with inverse market supply Consider a perfectly competitive market with inverse market supply and inverse market demand Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the deadweight loss resulting from the subsidy? A) 0, subsidies do not have a deadweight loss B) 2.5 C) 5 D) 7.5 and inverse market demand Consider a perfectly competitive market with inverse market supply and inverse market demand Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the deadweight loss resulting from the subsidy? A) 0, subsidies do not have a deadweight loss B) 2.5 C) 5 D) 7.5 Suppose the government subsidizes this market with a subsidy of $5 per unit.What is the deadweight loss resulting from the subsidy?


A) 0, subsidies do not have a deadweight loss
B) 2.5
C) 5
D) 7.5

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