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Unformatted text preview: Before Price Control After Price Floor @ K Change due to Pr. Floor P Q TCS TPS TMS DWL CS #11 (Page 2 of 2) Before Price Control After Price Ceiling @ J Change due to Pr. Ceiling P Q TCS TPS TMS DWL DWL = Dead Weight Loss The gains from trade that are not realized because the market is unable to reach the free market equilibrium. These are gains that are lost to society as a whole. WEALTH TRANSFER Surplus transferred from one party to another, but not lost to society as a whole. D:\ECON202\CS\CS 11 ECON EFFICIENCY.wpd...
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- Spring '08
- Perfect Competition