Exhibit 7-6
-Refer to Exhibit 7-6. The deadweight loss that results from a minimum price of $50 being established in the market is

Question

Exhibit 7-6 
-Refer to Exhibit 7-6. The deadweight loss that results from a minimum price of $50 being established in the market is

Quizplus · Accepted Answer

The deadweight loss is the area of the triangle below the demand curve and above the supply curve. In this case, the triangle is a right triangle with a base of 200 units and a height of $25. The area of a triangle is (1/2) * base * height, so the deadweight loss is (1/2) * 200 * 25 = $2,500.

Exhibit 7-6 -Refer to Exhibit 7-6. the Deadweight Loss That Results from That