Suppose price is 5 percent above equilibrium in two markets
Problem
Suppose price is 5 percent above equilibrium in two markets: a market for a necessity and a market for a luxury good. All else equal (including supply conditions), in which market do you expect deadweight loss to be greater? Explain.
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problemsuppose price is 5 percent above equilibrium in two markets a market for a necessity and a market for a luxury
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