Author Question: In the figure above, 10 percent of income in country C is distributed to the A) richest 10 ... (Read 42 times)

Metfan725 · **on:** Jun 29, 2018

In the figure above, 10 percent of income in country C is distributed to the

A) richest 10 percent of the households.
B) poorest 10 percent of the households.
C) poorest 30 percent of the households.
D) poorest 70 percent of the households.

Question 2

In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day.

What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.) A) 12.5 million
B) 6.25 million
C) 2.25 million
D) none of the above