Principles of Microeconomics / Unit 2 MIC 0133 short lesson, about 20 seconds
Transfer or Deadweight Loss
Captions available
The idea
A control does two things to surplus: part moves from one side to the other, a transfer, and part vanishes, a deadweight loss. Only the second costs society.
In practice
Under a ceiling a rectangle passes from sellers to buyers and two triangles vanish.
Where people slip
The side that gains the transfer favors the control: buyers back ceilings, sellers back floors, both overlook the triangles.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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