The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month...

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The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and that the production of gizmos must be 16000 each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the scale of the quantity axis is in thousands. Price of widgets $10 9 8 7 6 5 4 3 2 1 Supply Demand 0 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) Price of gizmos $100 90 80 70 60 50 40 30 20 10 0 Supply Demand 24 6 8 10 12 14 16 18 20ctivate Windows Go to Settings to activate Wi Quantity of gizmos (in thousands) What is the deadweight loss in the widgets market? What is the deadweight loss in the gizmos market? Activate Windows Go to Settings to activate Wind The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and that the production of gizmos must be 16000 each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the scale of the quantity axis is in thousands. Price of widgets $10 9 8 7 6 5 4 3 2 1 Supply Demand 0 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) Price of gizmos $100 90 80 70 60 50 40 30 20 10 0 Supply Demand 24 6 8 10 12 14 16 18 20ctivate Windows Go to Settings to activate Wi Quantity of gizmos (in thousands) The Ministry of Misallocation has decreed that the production of widgets must be 1000 each month and that the production of gizmos must be 16000 each month. Calculate the deadweight loss in each market caused by these restrictions. Note that the scale of the quantity axis is in thousands. Price of widgets $10 9 8 7 6 5 4 3 2 1 Supply Demand 0 1 2 3 4 5 6 7 8 9 10 Quantity of widgets (in thousands) Price of gizmos $100 90 80 70 60 50 40 30 20 10 0 Supply Demand 24 6 8 10 12 14 16 18 20ctivate Windows Go to Settings to activate Wi Quantity of gizmos (in thousands) What is the deadweight loss in the widgets market? What is the deadweight loss in the gizmos market? Activate Windows Go to Settings to activate Wind What is the deadweight loss in the widgets market? What is the deadweight loss in the gizmos market? Activate Windows Go to Settings to activate Wind

Answer rating: 100% (QA)

Widget Market From the supply curve it can be observed that at quant... View the full answer