Calculating the area of Deadweight Loss welfare loss in a Linear Demand and Supply model

Once you’ve learned how to calculate the areas of consumer and producer surplus on a graph when the market is in equilibrium, the next question is how so we determine the loss of total welfare when a market is out of equilibrium. This lesson shows how to find the changes in CS and PS when the price is not at the free market equilibrium and thereby determine how much welfare loss arises from a disequilibrium.

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