Figure 4.5.3.
-Look at Figure 4.5.3. If If quantity is 100, deadweight loss is area
A) BCF.
B) ACG.
C) DCE.
D) ACH.
E) HCG.

Question

Figure 4.5.3.
-Look at Figure 4.5.3. If If quantity is 100, deadweight loss is area
A) BCF. 
B) ACG. 
C) DCE. 
D) ACH. 
E) HCG.

Quizplus · Accepted Answer

The deadweight loss is the area of the triangle BCF. This is because the deadweight loss is the loss of consumer and producer surplus that occurs when the market is not in equilibrium. In this case, the market is not in equilibrium because the quantity supplied is less than the quantity demanded. The area of the triangle BCF represents the loss of consumer and producer surplus that occurs when the market is not in equilibrium.

Figure 4.5.3. -Look at Figure 4.5.3. If If Quantity Is 100, Deadweight