Figure 4-8 Figure 4-8 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month.
-Refer to Figure 4-8. What is the value of the deadweight loss after the imposition of the ceiling?

Question

Figure 4-8  Figure 4-8 shows the market for apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000 per month.
-Refer to Figure 4-8. What is the value of the deadweight loss after the imposition of the ceiling?

Quizplus · Accepted Answer

The deadweight loss is calculated based on the reduction in quantity traded due to the price ceiling, and the given options suggest that $100,000 is the correct value.

Figure 4-8 Figure 4-8 Shows the Market for Apartments