Suppose that the government int sets it at 2,250 pounds per week. What are the market price of stra deadweight loss created? The market price of strawberries The producer surplus is $4. >>> Answer to two decimal place The deadweight loss is $2.

Suppose that the government int sets it at 2,250 pounds per week. What are the market price of stra deadweight loss created? The market price of strawberries The producer surplus is $4. >>> Answer to two decimal place The deadweight loss is $2.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 6PA

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Question

The table shows the demand and supply schedules for strawberries.
Suppose that the government introduces a production quota for strawberries and
sets it at 2,250 pounds per week.
What are the market price of strawberries, the producer surplus, and the
deadweight loss created?
The market price of strawberries is $9 a pound.
The producer surplus is $4.
>>> Answer to two decimal places.
The deadweight loss is $2.
Price
(dollars per pound)
1.00
2.00
3.00
4.00
5.00
6.00
Quantity
demanded
Quantity
supplied
(pounds per week)
3,375
3,000
2,625
2,250
1,875
1,500
0
750
1,500
2,250
3,000
3,750
Next

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