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the equation of the supply curve is Ps=1+0.1*Qs and the equation for the demand curve is Pd=6-0.15*Qd. This results in an equilibrium price (Pe) of 3. This figure shows a regulated price (Pr) of 2, which results in the welfare loss triangle b + d, and the size of this welfare loss is 12.5. What is the size of the welfare loss triangle if the regulated price is 1.87?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9477640

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