Figure 15-9

-Refer to Figure 15-9.What area measures the deadweight loss?
A) (B-
F)*K
B) 0.5[(P-
O)*(L-
O)]
C) 0.5[(A-
H)*(L-
J)]
D) 0.5[(B-
F)*(L-

Question

Figure 15-9
 
-Refer to Figure 15-9.What area measures the deadweight loss?
A) (B-
F)*K 
B) 0.5[(P-
O)*(L-
O)] 
C) 0.5[(A-
H)*(L-
J)] 
D) 0.5[(B-
F)*(L-

Quizplus · Accepted Answer

Deadweight loss is typically represented by the area of a triangle formed between the supply and demand curves, and the quantity reduction due to a market distortion. In this case, option D represents such a triangle.

Figure 15-9 -Refer to Figure 15-9.What Area Measures the Deadweight Loss