Define Willingness to Pay (WTP)
· Evaluate the opportunity cost
· Determine Dead Weight Loss (DWL)
4.2 Action Required:
Watch the video using the following link: https://www.youtube.com/watch?v=kF1c8ujpTYY
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How to calculate deadweight loss
This video goes over the basic concepts of calculating deadweight loss, and goes through a few examples. More information on this topic is available at http://www.freeeconhelp.com/2011/10/how-to-calcula… Deadweight loss occurs when market equilibrium is not equal to efficient equilibrium. This means that the …
4.3 Test your Knowledge (Question):
Discuss the dead weight Loss
