(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:
Verified
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