Market equilibrium price is 683.25 and market equilibrium quantity is 2152.22. (b) Suppose for national security reason, the central planner forces the economy to reduce the production of good X by 50% of the market equilibrium levelWe will expect a welfare loss of dollars when compared to the market without intervention

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To determine the welfare loss resulting from the central planners intervention in reducing the production of good X by 50 of the market equilibrium le... View the full answer