18th
May
2014
Q&A: How to calculate dead weight loss?
posted in Society & Cultures |
Question by firetorpedo: How to calculate dead weight loss?
P=100-Q Demand Curve
P=3Q Supply Curve
I know how to get Consumer, producer and economic surplus, but how do I calculate dead weight loss?
Best answer:
Answer by ◇✰ |ぐぶ✚だしιての ◆✐ 【☒ⒹⒿ☒】サふひウのトの ナんミ ふのボひねのヱ ぬひヨミれ™
You can only calculate the dead weight loss when the price level (vertical line) is imposed. Without the tax, the dead weight loss is always zero.
I hope this helps!
~Tsugara
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