jaredec18

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Sep 22nd, 2019
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  1. The deadweight loss in the market of widgets is nil because the restricted quantity is same as the equilibrium quantity. Equilibrium is attained at a point where the demand curve is equal to the supply curve. Price is $5 and the quantity is 4000.
  2.  
  3. In gizmos market, the equilibrium quantity is 8000 but 10000 gizmos are required to produce. so the yellow coloured portion is the deadweight loss.
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  5. https://media.cheggcdn.com/media/b19/s1024x502/b19404d2-512f-4079-8205-e51571f986bb/php1gl9l7.png
  6.  
  7. Area of triangle = 1/2 * base * height.
  8.  
  9. DWL = 1/2 * (10000 - 8000) * (70-60)
  10.  
  11. DWL = $10000.
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