Question: 2 A Question 22 (5/miti 40- 10 D number at 50 100 150 200 250 300 smoke detectors Refer to the figure above. By installing



2 A Question 22 (5/miti 40- 10 D number at 50 100 150 200 250 300 smoke detectors Refer to the figure above. By installing a smoke chleinnina university residence, a student conters a positive external benetu on other students: the actector reduces the chance that other students will it fan ned if there is a fire. An economist has estimated that each smoke detector installed generale , an external benefit of $20 She also reports that the school can try smoke detectors for $ 40 each, which reflects the marginal cost of proud am, which is constant. The economist has estimated the demand curve for smoke detectors, which reflects the private benefit of having a smoke detector The demand curve is shown in the figue above. If the university decided to buy smoke detectors and sell them to students for $30 each, the resulting deadweight loss would be about? $250 $500 $1000 $50
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