-In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce.
B) $2,000.
C) $5,000.
D) $10,000.

Question

-In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal
A) $0, because 2,000 gloves per day is an efficient quantity of gloves to produce. 
B) $2,000. 
C) $5,000. 
D) $10,000.

Quizplus · Accepted Answer

The deadweight loss is calculated based on the difference between the efficient quantity and the restricted quantity. If 2,000 gloves is less than the efficient quantity, the loss in consumer and producer surplus due to underproduction would be $5,000.

-In the Above Figure, If the Production of Gloves Was