The graph shows the market for wool. Lobbyists persuade the government to pass a law that...

  

Transcribed Image Text:

The graph shows the market for wool. Lobbyists persuade the government to pass a law that limits the quantity of wool that producers sell to 20 pounds of wool a day. Is the market for wool efficient? If not, what is the deadweight loss? 20.00 18.00- 16.00- 14.00- 12.00- 10.00 8.00- 6.00- 4.00- 2.00- Price (dollars per pound) 6.00 0.00+ 0 DWL 10 + s D 20 30 40 50 Quantity (pounds per day) >>> Draw only the objects specified in the question. 60 Q 70 The graph shows the market for wool. Lobbyists persuade the government to pass a law that limits the quantity of wool that producers sell to 20 pounds of wool a day. Is the market for wool efficient? If not, what is the deadweight loss? 20.00 18.00- 16.00- 14.00- 12.00- 10.00 8.00- 6.00- 4.00- 2.00- Price (dollars per pound) 6.00 0.00+ 0 DWL 10 + s D 20 30 40 50 Quantity (pounds per day) >>> Draw only the objects specified in the question. 60 Q 70