The area of rectangle indicates tax revenue
b. Deadweight loss= Area of triangle ABC which = 1/2 x base x height
=1/2 x 300 x 15 =2,250
I have a little doubt here.....which is the rectangle area here....because as we know deadweight loss= lose of consumer surplus+loss of producer surplus...I am little bit confused...
The area of rectangle indicates tax revenue
b. Deadweight loss= Area of triangle ABC which = 1/2 x base x height
=1/2 x 300 x 15 =2,250