-Based on the graph above, suppose the government sets a price ceiling of $50 in this market. What is the minimum level of deadweight loss with the price ceiling?
A)7,500
B)3,750
C)1,875
D)937.50

Question

-Based on the graph above, suppose the government sets a price ceiling of $50 in this market. What is the minimum level of deadweight loss with the price ceiling?
A)7,500 
B)3,750 
C)1,875 
D)937.50

Quizplus · Accepted Answer

The minimum level of deadweight loss with a price ceiling is calculated based on the reduction in total surplus due to the price ceiling. The correct choice is the one that represents the smallest deadweight loss, which is $1,875.

-Based on the Graph Above, Suppose the Government Sets a Price