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Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)In the graph,how much is deadweight loss at a price of $12?

Question

Use the following to answer questions 
Figure: Determining Surplus and Loss 
-(Figure: Determining Surplus and Loss)In the graph,how much is deadweight loss at a price of $12?

Quizplus · Accepted Answer

The deadweight loss is the area of the triangle between the supply and demand curves up to the equilibrium quantity at a price of $12. Using the formula for the area of a triangle (1/2 x base x height), the deadweight loss is $70. Therefore, the best choice is D.

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