If consumer surplus is $6 million and producer surplus is $4 million, then we know that the deadweight loss is $2 million.

Question

Quizplus · Accepted Answer

Consumer surplus and producer surplus do not directly determine deadweight loss. Deadweight loss is the loss of economic efficiency when the equilibrium outcome is not achieved, and it requires additional information about the market, such as the presence of taxes, subsidies, or price controls, to calculate.

If Consumer Surplus Is $6 Million and Producer Surplus Is