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(Scenario: Freedonian Exports) in the Small Country of Freedonia, the Domestic

Question 49

Multiple Choice

(Scenario: Freedonian Exports) In the small country of Freedonia, the domestic demand for widgets is represented by P = 100 - 3Q; the domestic supply of widgets is represented by P = 1Q. Calculate the value of the deadweight losses associated with the $15 per unit export subsidy.


A) $37.50
B) $75.00
C) $112.50
D) $150.00

Correct Answer:

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