This post goes over the economics of a deadweight loss causes by a subsidy. For information on deadweight loss look here. This part of economics is fairly algebra intensive and the trick to solving these problems is knowing how to manipulate the demand and supply functions to get what you want. After that trick, it is a simple exercise in algebra to find equilibrium price and quantity. Here is the question in the context of bio-fuels: Suppose demand for bio-fuels is given as Qd=420-30p and supply is Qs=-44+24p. What is dead weight loss created by a subsidy of $3. 87 per unit paid to supplier? (The subsidy inclusive price received by suppliers is $3. 87 higher than the paid price paid by consumers) To solve this problem we need to follow these steps: Calculate equilibrium price and quantity without the subsidy. Calculate equilibrium price and quantity with the subsidy. Figure out the base and height of the resulting triangle that represents deadweight loss. Before I go through the associated math, let's first look at a graph representing the problem.
Want to see a lot of cables? The Internet giant offers a look inside several of its data centers in the United States, Finland, and Belgium. Google data center in Council Bluffs, Iowa Google's data centers can be vast. This one in Council Bluffs, Iowa, has more than 115, 000 square feet of room. Google's colored pipes Google's data centers use color-coded pipes to indicate what they're used for. Pink means water headed for outside cooling towers. Fixing a Google server Denise Harwood diagnoses an overheating CPU inside a long aisle between racks of computing gear in a Google data center. Stormtrooper on guard Google's Street View tour of a North Carolina data center includes this humorous view of including a Stormtrooper and R2-D2 droid from "Star Wars. " Google's Atlanta data center by night A Google data center outside Atlanta, Ga. Colored cables in Google data center Google uses huge numbers of servers, as evidenced by this long shot down one data center aisle. The colored cables are standardized across the company's data centers worldwide so their function is clearer.
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