Sammy has a drone that he values at 1,500. Frank values the same ...

[daltonest1984]

Sammy has a drone that he values at 1,500. Frank values the same drone at 1,000. The government offers a subsidy of 800 to the buyers of drones, and Sammy and Frank agree on a price of 1,600. The subsidy creates a deadweight loss of
 
  A) 0
  B) 200
  C) 500.
  D) 800.

Question 2

A major principle of economics is that people respond to incentives.
 
  Indicate whether the statement is true or false

[jojobee318]

Answer to Question 1

C

Answer to Question 2

TRUE

[daltonest1984]

Correct answers!

[jojobee318]

Great! Please up vote