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!
@@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?
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😥
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!
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.
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thanks, u saved my GPA.
Glad I could help!
Thank you, I had to look all over for a video that explained how to find the quantity floor and finally found this one!
I love you, sir, respectfully.
thank you! I have an exam in 6 hours. using this video as a review guide.
Glad to hear it. Good luck on the exam! :)
Keep making more videos. Liked and Subscribed and hit the notification bell for ALLLLL. Thanks
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
Nice and easy explanation!!! Thank you 😊
You're welcome! I'm glad you enjoyed! :)
Appreciate the help! Great explanation
Thank you!
Thanks! Explained it better than my teacher
Glad to hear you found it helpful!
Yeah that's helpful 👍🏻
Glad to hear it!
Thank you so much you are phenominal.
Blessings Brother appreciate it
Glad it was helpful!
Thank you, this is a great help. 🥰😇
I’m glad to hear it!
Very good explanation
Thank you sooo much ❤❤
Thank u for ur work! Could you also provide practice exercises in the end of ur discussions?
Absolutely! That’s a great idea!
Awesome video... Was really helpful
I'm glad to hear that!
awesome man, great video helping me with economics right now
I'm glad you're finding the videos helpful!
Thank you sir.
You’re welcome
greate video. thanks man
Glad you found it helpful! :)
Make video on how to calculate welfare also
very helpful
I'm glad to hear that!
really graet explanation
Thank you!
Nice 👍👍👍
Is the producer surplus under the price floor equal to the producer surplus at equilibrium?
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!
@@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?
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😥
Hello! Sorry if this question sounds stupid but how abt ceiling price? Which part of it is the dwl?
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!
What's the link to this video? Having trouble finding it. @@ThinkEcon
ruclips.net/video/a2iKaTqgrxs/видео.html
what would be the new consumer and producer surplus
The area of the green and pink sections respectively!
Where did you get 60 from the triangle
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!
from where did the supply and demand equations came and what is 5p?
The supply and demand equations will always be given for the problem, so these are just hypothetical equations to illustrate the steps to solving!
Is calculating deadweight lost the same think as calculating over and under production?
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.
@@ThinkEcon thanks ❤️
What if there is a monopoly
How to Calculate DEADWEIGHT LOSS on a Monopoly Graph (THE EASY WAY) | Think Econ
ruclips.net/video/ZMxUpGkwCb4/видео.html
what about with price ceiling?
It's the same process, but the DWL would be above the price ceiling!
Thank you so much
You're very welcome!
very helpful
Glad to hear it!