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Consider the market for potatoes with inverse demand given by P=60-2Q and inverse supply given by P=10+3Q

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Consider the market for potatoes with inverse demand given by P=60-2*Q and inverse supply

given by P=10+3*Q. Suppose the Price Ceiling is $25. Find the Deadweight Loss.

Formula to calculate this?

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Ceiling price= 25

Inverse supply;

P=10+3*Q

25= 10+ 3*Q

25- 10= 3*Q

15= 3*Q

Q= 15/ 3

= 5

Dead weight loss= 1/2* (P* Q)

= 1/2* 25* 5

= 62.5

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Consider the market for potatoes with inverse demand given by P=60-2*Q and inverse supply given by P=10+3*Q