-In the above figure,if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then area C + area E is equal to
A) deadweight loss.
B) consumer surplus.
C) total surplus.
D) producer surplus.
E) total revenue.

Question

-In the above figure,if the quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied,then area C + area E is equal to
A) deadweight loss. 
B) consumer surplus. 
C) total surplus. 
D) producer surplus. 
E) total revenue.

Quizplus · Accepted Answer

Area C + area E represents the deadweight loss, which is the loss of total surplus that occurs because the quantity is restricted below the equilibrium quantity.

-In the Above Figure,if the Quantity Is Restricted to 500,000