6) In the figure above, if pizza production increases to 15,000 pizzas a day, th

Question

6) In the figure above, if pizza production increases to 15,000 pizzas a day, the deadweight loss is A) $90,000 per day. B) $22,500 per day C) $45,000 per day. D) zero. E) $12,500 per day. Price (dollars per pizza) 20 15 price 10 D=MB 10 15 20 Quantity (thousands of pizzss por day) The figure above shows the demand curve for pizza and the market price of pizza. 7)In the figure above how much is the consumer who buys the 500th pizza willing to pay for that pina? A) S15 B) $22.50 C)S10 D) S5 B)S12 7)

Explanation / Answer

Zero. Deadweight loss occurs when there is reduction in producer or consumer surplus which will not happen here

15. Look at the point on demand curve which corresponds to 5000 quantity of pizza

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