Question: Market demand is D ( p ) = 1 2 0 - 4 p and supply is S ( p ) = 2 p .

Market demand is D(p)=120-4p and supply is S(p)=2p. If the government imposed a price floor in this market of p=25, which policy would result in more deadweight loss, buying excess supply or a deficiency payment?
Group of answer choices
Buying excess supply results in more DWL
A deficiency payment results in more DWL
They result in the same DWL

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