Price Controls & Deadweight Loss | AP Microeconomics

Consumer Surplus

Producer Surplus

Deadweight Loss

Select Government Policy

Government Mandated Price ($P_{gov}$)

$ --

Market Status

Equilibrium Reached

Quantity Supplied = Quantity Demanded

Observation Log

Free Market: The competitive market naturally settles at $P^*$ where $Q_d = Q_s$. Total Surplus is absolutely maximized and Deadweight Loss is zero.