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Suppose now that market demand function is given by x(p)=(190-p)/3. Market supply function is given by...

Suppose now that market demand function is given by x(p)=(190-p)/3. Market supply function is given by x(p)=(p-47)/5, and we are still in the perfectly competitive framework.

Compute the undistorted equilibrium price and denote it by p , and assume the government sets a price floor pf such that pf=1.1p .

What is the total deadweight loss associated with the introduction of this price floor?

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