The Demand and Supply of Ethanol Are Given by Q^D

question 28

Multiple Choice

The demand and supply of ethanol are given by Q^D = 8,000 - 2,000P and Q^S = 1,000P - 1,000, where P is price per gallon and Q measures gallons per minute. If the government subsidizes ethanol at $0.30 per gallon, what is the deadweight loss?

• A) $30
• B) $7,800
• C) $440
• D) $119

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Definitions:

Ventromedial Hypothalamus

A region of the brain involved in regulating hunger, satiety, and the body's energy homeostasis.

Thalamus

A major part of the brain located in the center of the brain, acting as a relay station for sensory information and playing a key role in the regulation of consciousness, sleep, and alertness.

Glucagon-like Peptide-1

A hormone involved in the regulation of blood sugar levels by enhancing the secretion of insulin.

Vomiting

The involuntary, forceful expulsion of stomach contents through the mouth.