Introduction to Dead Weight Loss (Welfare Loss)

Рет қаралды 101,238

7 жыл бұрын

As we've learned in earlier lessons, markets tend to achieve equilibrium prices and quantities that are efficient, as the marginal benefit of a product to its consumers equals the marginal cost to producers. But what makes outcomes other than equilibrium inefficient? This lesson looks at the impact of disequilibria on consumer and producer surplus, introducing the concept of "deadweight loss" or "welfare loss", which will further help us understand what makes outcomes other than the equilibrium quantity and price inefficient.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

Пікірлер: 35

@realdvgarg 4 жыл бұрын

I had done this concept a year ago and I was quite confident with it. But you always seem to give an edge to my knowledge. Keep it up!

@angelofrisina9231 Жыл бұрын

Such a great video, really helped me understand a few key points much better. Thank you!

@johnnytarkpah6782 3 жыл бұрын

This video should be far more then 16 thousand by now because your explanation is one of the simplest on the subject

@dumdum5296 3 ай бұрын

it is now

@vivekanand6618 4 жыл бұрын

Thanks Sir... for good explanation of D. W. Loss.. 🙏🙏

@chrisweber759 6 жыл бұрын

Do tarrifs create a surplus of quantity or do they behave differently than other types of price floors?

@user-tv8jd9lg7o 8 ай бұрын

Thank you for your brief explanation.

@lydiabrobbey5950 3 жыл бұрын

A little clarification, I thought the new producer surplus would be the very little triangle (3m) beneath and not including the rectangle (12m).

@raajrajan1956 5 жыл бұрын

good preentation.you can also dsicuss what is optimum tax gdp ratio

@saniabanu499 3 жыл бұрын

best explanation. thankyou

@bradleythirumurthi 2 жыл бұрын

Awesome video!

@geraldinemateos3466 Жыл бұрын

Thank you !! the video was very helpful :)

@jessicavandyke9693 5 жыл бұрын

When did 5-1 start to =6???

@jackiengai860 6 ай бұрын

excellent explanation. perfect 👏👏👏👏👏

@tomtomgaming612 2 жыл бұрын

Why does he time the base with 6 when finding consumer surplus and producer surplus?

@JB-ie6dn 6 жыл бұрын

0:00 top 10 anime openings

@karan_karan_karan 3 жыл бұрын

i skip that so fast omg

@jumamwangaza5843 5 жыл бұрын

And this was superb

@footballandsoccerhq 19 күн бұрын

How do we know that the producers with the greatest surplus will sell at 7? How come others that can make a producer surplus who can sell from 3 to 7 dollars won't be able to sell the beef?

@lethreebros5488 2 жыл бұрын

Thanks helped allot 😊

@michaelattafrimpong9827 3 жыл бұрын

thank u for ur support keep it up

@mvrma5746 7 жыл бұрын

what is the logic behind devided by 2? please explain

@mvrma5746 7 жыл бұрын

got it

@raajrajan1956 6 жыл бұрын

area formula for right angled triangle

@moammadaliyaqubi6806 5 жыл бұрын

(7-3)*3 you didnt divide it by 2, while you did for calculating other two welfares!

@styt3geia 4 жыл бұрын

it's area of rectangle not area of triangle, that's why

@jademedorzil2850 5 жыл бұрын

👌🏽👌🏽👌🏽

@vitalliao7812 5 жыл бұрын

Why my professor doesn't teach in this way in class?? so we are all better off./ Come on teacher

@free4UnI 3 жыл бұрын

안정원 이익준

@deepak_chahal_w 4 жыл бұрын

Grt

@MrMurfle Жыл бұрын

Why would you want to maximize total surplus ('welfare') where consumers are many and typically not wealthy and producers are few and typically very wealthy, as would be the case for many products? A dollar to a poor or average person would be worth more to them than to the fat-cat producers.