In the market for used cars, the demand and supplyequations are given by Qd = 12,000 – 0.4P and0.1P+ 5, 000, where P is the price per car-Qsand Q measures the quantity of cars. What is thesize of the deadweight loss at a price floor of15, 000?

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In the market for used cars, the demand and supply equations are given by Qd = Qs = 0.1P+ 5, 000, where P is the price per car and Q measures the quantity of cars. What is the size of the deadweight loss at a price floor of 15, 000? 12, 000 – 0.4P and

In the market for used cars, the demand and supply equations are given by Qd = Qs = 0.1P+ 5, 000, where P is the price per car and Q measures the quantity of cars. What is the size of the deadweight loss at a price floor of 15, 000? 12, 000 – 0.4P and

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 2P

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Question

In the market for used cars, the demand and supply
equations are given by Qd = 12,000 – 0.4P and
0.1P+ 5, 000, where P is the price per car
-
Qs
and Q measures the quantity of cars. What is the
size of the deadweight loss at a price floor of
15, 000?

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