Figure: The Shrimp Market
If the government imposes a quota limiting sales of shrimp to 500 pounds, the deadweight loss is:
Figure: The Shrimp Market Price of shrimp (per pound) $22.50 $20.00 $17.50 $15.00 $12.50 $10.00 $7.50 $5.00 $2.50 $0 250 500 750 1,000 1,250 1,500 1,750 Quantity of shrimp (in pounds)
$2,500 $1,250 $625 $5,000