Consider the Following Demand and Supply Schedules for Some Agricultural

question 32

Multiple Choice

Consider the following demand and supply schedules for some agricultural commodity. $$\begin{array} { | c | l | c | } \hline \text { Price } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 10 & 300 & 1100 \\\hline \$ 30 & 500 & 900 \\\hline \$ 50 & 700 & 700 \\\hline \$ 70 & 900 & 500 \\\hline \$ 90 & 1100 & 300 \\\hline \$ 110 & 1300 & 100 \\\hline\end{array}$$ TABLE 5- 2
-Refer to Table 5- 2.Consider the market- clearing equilibrium.If the government then imposes a production quota of 500 units,the deadweight loss that is created is equal to

• A)$2000.
• B)$3000.
• C)$4000.
• D)$5000.
• E)$1000.

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