Consider the market for wheat where demand is given by: Upper Q Superscript d Baseline equals 80 minus 2 p and supply is given by: Upper Q Superscript s Baseline equals 40 plus 1 p. Now suppose that, due to a market failure (an artificial shipping constraint), a maximum of 43.34 units of wheat can be supplied by firms in the market. (p = The amount of the deadweight loss caused by the market failure is $ nothing. (Enter your answer rounded to the nearest penny and as a positive number.)

The market for wheat is calculated as follows:

Explanation:

Setting QD = QS

100 minus 4P = 40 plus 4P

100 minus 40 = 4Pplus4P

60 = 8P

P = 60/8 = 7.5

Q = 100 minus 4(7.5) = 70

When supply = 65

Price at which consumers would demand

65 = 100 minus 4P

4P = 100 minus 65

P = 8.75

Price at which producers would supply

65 = 404P

65 minus 40 = 4P

P = 6.25

DWL = 0.5 into (8.75-6.25) into (70-65)

= 6.25

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.