00:01
What is dead way loss in this video, we will consider the concept.
00:07
Graphical illustration on finding the very good bye that we lost is the lost gains from trade beauty market inefficiencies consumers number of users engage in trade if the transaction is mutually beneficial.
00:28
But market inefficiencies can reduce or increase the amount of trade below or above what is socially up him.
00:39
And how does this happen? let's concede there a graphical illustration.
00:46
The graph in the left hand side shows a market without distortions.
00:53
In this market, the equilibrium occurs where the demand curve meets the supply curve in a delirium.
01:03
Just our units are sold at b star prices.
01:08
Hear consumer am pretty is our surplus are moxie mites in the right hand side, we have a graph off the same market after the introduction off attacks on producers.
01:24
How much straight occurs here now the hickley rim lies where the demand curve meets the aftertax soup like er you to the tax from sections fall from q star to q prime that that way loss is the green area off the graph, which accounts for the value off the transactions not made after the introduction off the tax that's consider america looks up that way.
02:02
Loss, as we mentioned, can be computed as the green area off the graph...