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.

[BeHappy-opdn]

there is a mistake Total welfare at Eq shoud be PS=【（5-1）*20】/2=40

[vamsilengwenya]

Most useful videos on the platform really...

[flyway]

Thank you. This was very helpful. I'm new to this whole thing so your explanation was a great tool in studying. Cheers

[crissasuarez]

Very helpful. Easiest way to understand the concept. ♥️♥️♥️

[amantekle]

Well explained and thank you! I would appreciate if you can make a similar video on Monopoly.

[samirboulekraout]

Would you multiply the CS, PS and TS by 1, 000 since the quantities are in thousands of kilos?

[jrod]

On total welfare where did you get the 1?

[waynephukubje]

To calculate P Surplus is it not (5-2)20/2=30