The figure above shows the market for coffee If the government pays the coffee producers a subsidy and production increases to 30 million pounds per day, the deadweight loss is
A) zero.
B) $7.5 million.
C) $15 million.
D) $10 million.
B
You might also like to view...
Military decisionmakers want to keep procurement costs low in order to increase the likelihood that the program will be approved. As a results, ______
a. maintenance costs on contracted output tend to be higher b. maintenance costs on contracted output tend to be lower c. maintenance costs on contracted output are minimized d. maintenance costs on contracted output are eliminated
Real GDP refers to nominal GDP adjusted for
a. depreciation. b. price changes. c. exports. d. taxes and saving.
In economics, the cost of something is?
A. The out-of-pocket expense of obtaining it. B. What you must give up to get it. C. Always measured in units of time. D. Always higher than people think.
When Coca Cola introduced a new, low-calorie version of Coca Cola called C2, despite a major marketing effort, sales of C2 were weak and many doubted that the product would last. Coke's experience with C2 illustrates the economic concept of:
A. producer sovereignty. B. consumer sovereignty. C. market failure. D. limited liability.