Using a graph similar to question 3 and the information provided, what is the deadweight loss (DWL) in the economy?
Suppose the demand function for the product is Qd = 65,800 – 1,200P and the supply function is Qs = 4,000P – 20,000. Suppose also that there is a price floor of 20 dollars. Using a graph similar to question 3 and the information provided, what is the deadweight loss (DWL) in the economy?
A.DWL = $10,500
B. DWL = $9,555
C. DWL = $11,555
D.DWL = $12,000
