How to Calculate Deadweight Loss (with a Price Floor) | Think Econ

[@ThinkEcon]

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[@SamsEconomicstutorials-jn9dc]

Thank you sir. Your videos helped. I'm now able to teach economics on my KZbin channel " Sam's Economics Tutorials"

[@omarezzat8270]

thanks, u saved my GPA.

[@ThinkEcon]

Glad I could help!

[@DeltaAirlines737]

Thank you, I had to look all over for a video that explained how to find the quantity floor and finally found this one!

[@JessicaMachiavelli]

thank you! I have an exam in 6 hours. using this video as a review guide.

[@ThinkEcon]

Glad to hear it. Good luck on the exam! :)

[@elladre137]

I love you, sir, respectfully.

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You're doing the lord's work

[@miid_wiinter5852]

I can’t thank you enough for this, thank you so much.

[@ThinkEcon]

Glad I could help!

[@janenelisafreitas6071]

Thank you so much you are phenominal.

[@SammyUdijol]

In fact you are the best. I will like you to make a video on how tax is shared between consumers and producers and also how to calculate it

[@dunot9605]

Thanks! Explained it better than my teacher

[@ThinkEcon]

Glad to hear you found it helpful!

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Keep making more videos. Liked and Subscribed and hit the notification bell for ALLLLL. Thanks

[@TheOwlTheOne]

Appreciate the help! Great explanation

[@ThinkEcon]

Thank you!

[@laxmimaurya8487]

Nice and easy explanation!!! Thank you 😊

[@ThinkEcon]

You're welcome! I'm glad you enjoyed! :)

[@daniel-or2pg]

Blessings Brother appreciate it

[@ThinkEcon]

Glad it was helpful!

[@wasixsunil]

Yeah that's helpful 👍🏻

[@ThinkEcon]

Glad to hear it!

[@gss8791]

Very good explanation

[@user-phaseadams]

Thank you sooo much ❤❤

[@ernestdaka4083]

Awesome video... Was really helpful

[@ThinkEcon]

I'm glad to hear that!

[@suchetanamukhopadhyay3746]

Thank you sir.

[@ThinkEcon]

You’re welcome

[@O919lok]

Thank u for ur work! Could you also provide practice exercises in the end of ur discussions?

[@ThinkEcon]

Absolutely! That’s a great idea!

[@jeanfrancofigallo7080]

awesome man, great video helping me with economics right now

[@ThinkEcon]

I'm glad you're finding the videos helpful!

[@priyanshukr.sharma2697]

really graet explanation

[@ThinkEcon]

Thank you!

[@noahp7062]

greate video. thanks man

[@ThinkEcon]

Glad you found it helpful! :)

[@Irene39.]

Thank you, this is a great help. 🥰😇

[@ThinkEcon]

I’m glad to hear it!

[@Steph-ng3fv]

very helpful

[@ThinkEcon]

I'm glad to hear that!

[@CrissyHellwig]

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[@nimra9679]

Make video on how to calculate welfare also

[@ajkbox]

Is the producer surplus under the price floor equal to the producer surplus at equilibrium?

[@ThinkEcon]

Great question. The simple answer is now. The price floor causes disequilibrium which creates a deadweight loss that is not present in equilibrium. Therefore, the producer surplus is smaller when a price floor is implemented than when a market is in equilibrium!

[@ajkbox]

​@@ThinkEconin the graph at about 5:10 it looks as if the producer surplus would be about the same as at equilibrium. Is it just a coincidence? Or is it a function of the crossing point between the floor and the production line?

[@rraehaneh]

Hello! Sorry if this question sounds stupid but how abt ceiling price? Which part of it is the dwl?

[@ThinkEcon]

Not a stupid question at all! We do have a video about price ceilings where I highlight the DWL section on a graph. You should check it out if you get the chance!

[@jamesbrannigan8530]

What's the link to this video? Having trouble finding it. @@ThinkEcon

[@ThinkEcon]

kzbin.info/www/bejne/l2PMfJSKpsylrtU

[@shikhasingh2898]

Nice 👍👍👍

[@ni731]

I need some help. i have a similar example, but i have only given supple and deman equation of the lines. How can i calculate monopsony deadweight loss😥

[@yousrachouihi5306]

what would be the new consumer and producer surplus

[@ThinkEcon]

The area of the green and pink sections respectively!

[@ayeshafaheem4467]

from where did the supply and demand equations came and what is 5p?

[@ThinkEcon]

The supply and demand equations will always be given for the problem, so these are just hypothetical equations to illustrate the steps to solving!

[@ovieomuoreh8440]

Where did you get 60 from the triangle

[@ThinkEcon]

Great question! It's the height of the DWL triangle. Looking at the Quantity axis it's the difference between 180 and 120. Hope this helps!

[@Arturo-hc9pl]

Is calculating deadweight lost the same think as calculating over and under production?

[@ThinkEcon]

They’re similar, but not the same. DWL occurs any time a market is out of equilibrium. Over and under production are just two possibilities for disequilibrium.

[@Arturo-hc9pl]

@@ThinkEcon thanks ❤️

[@respectydhdjxh1977]

what about with price ceiling?

[@ThinkEcon]

It's the same process, but the DWL would be above the price ceiling!

[@updeshsinghbhangu9061]

What if there is a monopoly

[@ThinkEcon]

How to Calculate DEADWEIGHT LOSS on a Monopoly Graph (THE EASY WAY) | Think Econ kzbin.info/www/bejne/kH7bhqN9oNx2mJY

[@Prjthpa]

Thank you so much

[@ThinkEcon]

You're very welcome!

[@sarahaddae6958]

very helpful

[@ThinkEcon]

Glad to hear it!