Suppose That the Market for Cigarettes Is Initially in Equilibrium $P = 60 - Q ^ { d }$

question 22

Multiple Choice

Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 60 - Q ^ { d }$ ; the supply curve can be expressed as $P = 0.5 Q ^ { 5 }$ . Quantity is expressed in millions of boxes per month. Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month. What is the deadweight loss (per million boxes) associated with the quota?

• A) $275.
• B) $75.
• C) $50.
• D) $25.

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Definitions:

Economic Inequality

The unequal distribution of wealth and income among individuals or groups within a society or between countries.

Ableist Language

Language that discriminates against or devalues individuals with disabilities, often perpetuating societal stereotypes and stigmas.

Institutionalized Ableism

Systemic preferencing of non-disabled individuals, resulting in discrimination against people with disabilities in various societal institutions.

Obesity Epidemic

Refers to the widespread and increasing occurrence of obesity within a population, considered a significant public health concern.