The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton.
-The figure above shows that the deadweight loss from the government's policy is
A) about $350 million.
B) about $25 million.
C) about $50 million.
D) about $100 million.
E) zero.

Question

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton.
-The figure above shows that the deadweight loss from the government's policy is
A) about $350 million. 
B) about $25 million. 
C) about $50 million. 
D) about $100 million. 
E) zero.

Quizplus · Accepted Answer

The deadweight loss is typically calculated as the area of the triangle formed between the supply and demand curves due to the policy. The figure likely shows this area as $50 million.

The Figure Above Shows the Market for Sugar Beets