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Q16 (1 point). Refer to the figure entitled Market for Meds. If a production quota of 20 units is imposed, what will be theQ17 (1 point). Refer to figure entitled Market for Gourmet Burgers. Suppose a tax of $2 per burger is imposed on the consum

Q16 (1 point).

Refer to the figure entitled "Market for Meds". If a production quota of 20 units is imposed, what will be the deadweight loss?

5

10

15

20

Q17 (1 point).

Refer to figure entitled "Market for Gourmet Burgers". Suppose a tax of $2 per burger is imposed on the consumers, what will be the new equilibrium market price and quantity?

$4, 4

$6, 4

$4, 6

$6, 6

None of the above.

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Answer #1

16. The correct answer is 20.

Because dead weight loss = 1/2×( 6-4)×20

So dead weight loss = 1/2×2×20 = 20.

17 The correct answer is $6, 4

Because after Imposing of tax the price paid by consumer = 5 + 1(tax) = $6 and price received by producer = 5 - 1(tax) = $4. And at price $6 the quantity Demanded is 4 units..

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