We defined deadweight loss as the decrease in economic activity caused by market distortions. One…

We defined deadweight loss as the decrease in economic activity caused by market distortions. One place where we see deadweight loss is during Halloween’s trick-or-treat. Children of all ages return home with bags of candy, some of which they love and others that they don’t care for. A lot of candy ends up uneaten. In this context, we can think of uneaten candy as not being distributed effectively by the market; therefore, deadweight loss occurs. What ways can you think of to improve how candy is given away during trick-or-treat so that children would receive more candies that they enjoy?

»We defined deadweight loss as the decrease in economic activity caused by market distortions. One place where we see deadweight loss is during Halloween’s trick-or-treat. Children of all ages return home with bags of candy, some of which they love and others that they don’t care for. A lot of candy ends up uneaten. In this context, we can think of uneaten candy as not being distributed effectively by the market; therefore, deadweight loss occurs. What ways can you think of to improve how candy is given away during trick-or-treat so that children would receive more candies that they enjoy? Provide three possible solutions.  

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