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Figure: Random Allocation under Price Ceilings
Refer to the figure. The government enacted a price ceiling of $6 per unit. Using the information provided in the graph, calculate the following:
a. If the goods are allocated randomly between the high-value uses and the low-value uses, what is the total amount of consumer surplus in dollars?
b. What is the lost amount of consumer surplus when goods are allocated randomly, when compared to a situation in which the goods are allocated only to the highest-value uses?
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A belief that control over events and outcomes lies outside oneself.
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A planned, structured set of physical activities designed to improve or maintain physical fitness.
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The method that starts, directs, and sustains actions aimed at achieving specific goals.
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