Figure 14-9
-Refer to Figure 14-9.What area measures the deadweight loss?

Name: Figure 14-9 -Refer to Figure 14-9.What area measures the deadweight loss?
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Question

Figure 14-9 
-Refer to Figure 14-9.What area measures the deadweight loss?

Quizplus · Accepted Answer

Deadweight loss is the area between the supply and demand curves, where the quantity supplied and quantity demanded are not equal due to market inefficiency. In this figure, the deadweight loss is represented by the triangle formed by points B, F, and L-K, which is given by 0.5[(B-F)*(L-K)]. Therefore, the correct choice is D.

Figure 14-9 -Refer to Figure 14-9.What Area Measures the Deadweight Loss