Refer to Figure 9.1.2 above. At price 0H and quantity Q1, the deadweight loss is:

A) DGC.
B) BDC.
C) BGC.
D) 0FGQ₁.
E) none of the above

Question

Refer to Figure 9.1.2 above. At price 0H and quantity Q1, the deadweight loss is:A)  DGC.B)  BDC.C)  BGC.D)  0FGQ 1 .E)  none of the above

Tyler willingham · Accepted Answer

Final Answer : C, Explanation :  The deadweight loss is the triangular area between the supply and demand curve up to the quantity exchanged at the equilibrium quantity Q1. This triangle is bounded by the vertical distance between the supply and demand curve at quantity Q1 (BG), the horizontal distance between the equilibrium quantity and the efficient quantity (GC), and the hypotenuse which connects points B and C. Therefore, the deadweight loss is area BGC.

Refer to Figure 9.1.2 above. At price 0H and quantity Q1, the deadweight loss is:

A) DGC.
B) BDC.
C) BGC.
D) 0FGQ₁.
E) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 9.1.2 above. At price 0H and quantity Q1, the deadweight loss is:A) DGC.B) BDC.C) BGC.D) 0FGQ1.E) none of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 9.1.2 above. At price 0H and quantity Q1, the deadweight loss is:

A) DGC.
B) BDC.
C) BGC.
D) 0FGQ₁.
E) none of the above