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3 Tutorials that teach Deadweight Loss

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Colton Cranston

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Tutorial

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Source: SOURCE: Image of For Rent Sign Creative Commons http://clickandprintfree.com/sale/sale01.html

Video Chapters

(00:00 - 00:13) Introduction

(00:14 - 03:06) Market Surplus

(03:07 - 05:30) Price Floor-Deadweight Loss

(05:31 - 06:54) Price Ceiling-Deadweight Loss

(06:55 - 08:24) Summary

Notes for "Deadweight Loss"

Key Terms

Deadweight loss

A situation, often caused by an imposed constraint, that results in either excess demand or supply occurring at the market price due to the inability of the market to adjust to market clearing price and quantity.

Consumer surplus

Determined by the difference between actual price paid for a good and the highest amount the consumer would have willingly paid for the good.

Producer surplus

The difference between actual payment for a good and the least amount a producer would have willingly agreed to receive for the good.