-In the above figure,if the quantity is equal to 2,500,000 units,the deadweight loss is equal to
A) area B + area F.
B) area D + area I.
C) area C.
D) area G + area H.
E) None of the above answers is correct because the deadweight loss is equal to zero.

Question

-In the above figure,if the quantity is equal to 2,500,000 units,the deadweight loss is equal to
A) area B + area F. 
B) area D + area I. 
C) area C. 
D) area G + area H. 
E) None of the above answers is correct because the deadweight loss is equal to zero.

Quizplus · Accepted Answer

Deadweight loss occurs when the quantity produced is not at the equilibrium level, leading to a loss of economic efficiency. If the quantity is 2,500,000 units and this is not the equilibrium quantity, the deadweight loss would be represented by the areas that reflect the loss in consumer and producer surplus, which is typically shown as area D + area I in such diagrams.

-In the Above Figure,if the Quantity Is Equal to 2,500,000