Figure 4.5.3.
-Look at Figure 4.5.3. If If quantity is 200, deadweight loss is area
A) BCF.
B) ACG.
C) DCE.
D) ACH.
E) HCG.

Name: Figure 4.5.3. -Look at Figure 4.5.3. If If quantity is 200, deadweight loss is area A) BCF. B) ACG. C) DCE. D) ACH. E) HCG.
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Question

Figure 4.5.3.
-Look at Figure 4.5.3. If If quantity is 200, deadweight loss is area
A) BCF. 
B) ACG. 
C) DCE. 
D) ACH. 
E) HCG.

Quizplus · Accepted Answer

Deadweight loss is the loss of economic efficiency that occurs when the equilibrium for a good or service is not Pareto optimal. In Figure 4.5.3, deadweight loss is represented by the area DCE. Therefore, the answer is C.

Figure 4.5.3. -Look at Figure 4.5.3. If If Quantity Is 200, Deadweight