What is the resulting deadweight loss of the subsidy

Assignment Help Business Economics

Reference no: EM133401878

QUestion: Assume the wine market in Bordeaux (France) is characterized by the following functions, P=130-2Q (demand curve) and P=40+Q (supply curve). Q denotes the quantity of wine (in barrels) and P its price (also per barrel)

The government provides a subsidy of $30/barrel. Compared to the the free market outcome, what is the resulting deadweight loss (DWL) of the subsidy?

Reference no: EM133401878

Questions Cloud

What was the negative impact of their unethical methods : What social 'good' was the study trying to explore or contribute to? What was the negative impact of their unethical methods

Define independent ariables regarding domestic violence : Define independent and dependent variables regarding domestic violence and 911 calls, and be able to identify each in a study.

How does an organization type affect behavior : How does an organization type affect behavior within that organization? •What does a project manager need to do to accommodate each type of organization

What are three internal and three external research-based : What are three internal and three external research-based organizational factors that commonly wield the greatest influence on a private healthcare organization

What is the resulting deadweight loss of the subsidy : The government provides a subsidy of $30/barrel. Compared to the the free market outcome, what is the resulting deadweight loss (DWL) of the subsidy?

Discuss law enforcement professionals encounter : Discuss problems that law enforcement professionals encounter when computer crime laboratories fail to provide state-of-the-art technology.

Promotional display stand for your restaurant to market : You are the manager of a restaurant and the management has asked you to plan and implement a half day promotional display stand for your restaurant to market

What would you identify as critical information : MSPM 3780 Clark University What would you identify as critical information for each activity? 3. What are the responsibilities of the resources included

How would you replace these items if they were damaged : How would you replace these items if they were damaged by a fire or some other peril? How much would it cost and what is the difference of cost for cash value

User Account

All Pages