-The above figure shows the demand and supply curves for housing. As a result of a rent ceiling at
$500, the deadweight loss is represented by the area

Question

Quizplus · Accepted Answer

The deadweight loss from a rent ceiling is the loss of economic efficiency when the equilibrium outcome is not achievable due to the ceiling. It is represented by the area of triangle eca, where the supply and demand curves do not meet due to the price being artificially held below the equilibrium price, leading to a shortage.

-The Above Figure Shows the Demand and Supply Curves for Housing