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A marketing order for oranges has a fixed total supply of Q=1000 crates a month. Demand in the fresh orange market is Qf =220-0.2p and demand in the market for processed orange products is Qp =1000-2p.
(i) Calculate the competitive market-clearing price.
(ii) What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised to $200 and the price floor is sustained in the processed market at p obtained in (i)?
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