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3.5 Consumer, Producer Surpluses and Deadweight Loss

Last updated about 3 years ago

4 Nsɛmmisa

1

Asemmisa {{asɛmmisaAhyɛnsode}}

1.

Draw a supply and demand curve; color in consumer and producer surpluses.

1

Asemmisa {{asɛmmisaAhyɛnsode}}

2.

Quickly redraw the above but now with dead weight loss due to a price ceiling.

1

1

Asemmisa {{asɛmmisaAhyɛnsode}}

3.

Quickly redraw the above but now with dead weight loss due to a price floor.

Asemmisa {{asɛmmisaAhyɛnsode}}

4.

What is deadweight loss (DWL) and why do economists care?