Suppose the Market for Oranges Is Perfectly Competitive and Unregulated

question 1

Multiple Choice

Suppose the market for oranges is perfectly competitive and unregulated.Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges.Suppose Q_D = 1000 - 100P and Q_S = -100 + 100P.If regulators limited production to 200 bushels,the deadweight loss relative to the option of setting the optimal tax would be would be

• A) $0
• B) $200
• C) $500
• D) $1000

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Definitions:

Genotype Frequency

The proportion of a particular genotype in the population. Compare with allele frequency and phenotype frequency.

Aa Genotypes

Refers to the genetic makeup of an organism having one dominant allele (A) and one recessive allele (a) for a particular trait.

Hardy-Weinberg Predictions

Hardy-Weinberg predictions are mathematical expressions that describe the expected frequencies of genotypes in a population under certain conditions, including random mating and absence of evolutionary forces.

Genetic Equilibrium

A state in a gene pool where the frequency of alleles remains constant from generation to generation in the absence of evolutionary forces.