-In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce.
B) $5,000.
C) $10,000.
D) $2,000.

Question

-In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce. 
B) $5,000. 
C) $10,000. 
D) $2,000.

Quizplus · Accepted Answer

Deadweight loss occurs when the quantity of a good produced is not at the market equilibrium, where supply equals demand. If the production of gloves is restricted to 2,000 a day and this quantity is below the market equilibrium quantity, it would result in a deadweight loss because there are buyers willing to pay more than the marginal cost of production for additional gloves that are not being produced. Without seeing the figure, the specific answer can't be directly linked to the visual data provided, but generally, a restriction like this leads to inefficiency in the market, hence a deadweight loss. The correct answer among the given options, based on typical economic principles, would be a specific value that reflects the area of the deadweight loss triangle in a supply and demand graph, assuming the figure supports this interpretation.

-In the Above Figure, If the Production of Gloves Was