-In the figure above, if the quantity is restricted to 2, then the deadweight loss in this market equals
A) b + g.
B) c + d.
C) e + k.
D) h + i.

Question

-In the figure above, if the quantity is restricted to 2, then the deadweight loss in this market equals
A) b + g. 
B) c + d. 
C) e + k. 
D) h + i.

Quizplus · Accepted Answer

The deadweight loss is the area of the triangle formed by the supply and demand curves and the price ceiling or floor. In this case, the deadweight loss is the area of the triangle formed by the supply curve, the demand curve, and the price ceiling of 2. This area is equal to b + g.

-In the Figure Above, If the Quantity Is Restricted to 2