-In the above figure, if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then area C + area E is equal to
A) deadweight loss.
B) total surplus.
C) total revenue.
D) producer surplus.
E) consumer surplus.

Question

-In the above figure, if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then area C + area E is equal to
A) deadweight loss. 
B) total surplus. 
C) total revenue. 
D) producer surplus. 
E) consumer surplus.

Quizplus · Accepted Answer

Area C + area E represents the deadweight loss, which is the loss of total surplus that occurs when the quantity of a good that is bought and sold is below the market equilibrium quantity.

-In the Above Figure, If the Quantity Is Restricted to 500,000