Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The graph shows the market for game consoles
Suppose 1 million game consoles a year are being produced
Draw the deadweight loss on game consoles
Suppose the quantity of game consoles produced is 1 million and the price is the equilibrium price
Calculate the consumer surplus, producer surplus, and deadweight loss
The consumer surplus is 5
The producer surplus is 5
The deadweight loss is
million.
million
million
000
500-
4004
200
Price (dolars per game console)
3004
100
300
3
Quantity (millions of game consoles per year)
C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea703204-20ad-4ca7-89b6-7bcd9a1e7276%2F448d73f0-6fd3-49a3-87fa-464cb2580653%2Fy9tguwh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The graph shows the market for game consoles
Suppose 1 million game consoles a year are being produced
Draw the deadweight loss on game consoles
Suppose the quantity of game consoles produced is 1 million and the price is the equilibrium price
Calculate the consumer surplus, producer surplus, and deadweight loss
The consumer surplus is 5
The producer surplus is 5
The deadweight loss is
million.
million
million
000
500-
4004
200
Price (dolars per game console)
3004
100
300
3
Quantity (millions of game consoles per year)
C
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