-The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the deadweight loss?

Question

Quizplus · Accepted Answer

The deadweight loss in a market with a support price is typically represented by the area of lost consumer and producer surplus due to the price being set above the equilibrium. In this case, area E represents the deadweight loss.

-The Above Figure Shows the Domestic Market for Tomatoes