Graph 9-3
-In Graph 9-3, after the quota, deadweight loss would be equal to:
A)E
B)B
C)D + F
D)B + D + E + F

Question

Graph 9-3 
-In Graph 9-3, after the quota, deadweight loss would be equal to:
A)E 
B)B 
C)D + F 
D)B + D + E + F

Quizplus · Accepted Answer

To calculate deadweight loss, we need to find the triangle formed by the vertical distance between the supply curve and the demand curve at the quantity traded under the quota (D quantity in this case) and the horizontal distance between the quota and the free market quantity (B + D + E + F in this case). Therefore, the deadweight loss would be equal to triangle D + F.

Graph 9-3 -In Graph 9-3, After the Quota, Deadweight Loss Would Be