Worked-example setupScope and assumptions
- At each controlled price, the 700-chair short-side quantity is traded and allocated efficiently to the highest-value buyers and lowest-reservation-cost sellers.
- Untraded offered output is not produced, wasted, purchased by a third party, or entered into inventory in this bounded calculation.
- Search, queue, enforcement, quality, administrative, external, and distributional effects are excluded.
- Period
- One representative fictional week
- Units
- USD of modeled surplus per representative week
- Rounding
- Exact whole US dollars
Compare all components on one scope
| Price | Consumer surplus | Producer surplus | Total surplus | Deadweight loss |
|---|---|---|---|---|
| $50 ceiling | $38,500 | $24,500 | $63,000 | $1,000 |
| $60 equilibrium | 32,000 | 32,000 | 64,000 | — |
| $70 floor | 24,500 | 38,500 | 63,000 | 1,000 |
The ceiling changes the division toward buyers who receive the rationed units; the floor changes it toward sellers who complete trades. Those component changes include transfers. The $1,000 difference between $64,000 and $63,000 is the modeled deadweight loss from the 100 mutually beneficial units no longer traded.
Do not post the table to a ledger
Deadweight loss is not an entity expense or cash payment. Consumer and producer surplus are not receivables or profit. The table is a welfare-model reconciliation under efficient allocation and zero implementation cost.
Queues, random rationing, unsold production, enforcement, quality, and third- party effects can change both total and incidence. A complete policy evaluation would add those effects and a declared distributional or rights-based criterion.
Verified calculation · economics foundations analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- linear markets
- 1 field
Inspect data
{
"linden_policy_welfare": {
"demand_intercept_quantity": 1400,
"demand_quantity_per_price": 10,
"price_checks": {
"ceiling_50": 50,
"equilibrium_60": 60,
"floor_70": 70
},
"supply_intercept_quantity": 200,
"supply_quantity_per_price": 10
}
}Recomputed result
| Measure | Value |
|---|---|
| ceiling 50 consumer surplus on traded quantity | 38,500 |
| ceiling 50 deadweight loss relative to equilibrium | 1,000 |
| ceiling 50 producer surplus on traded quantity | 24,500 |
| ceiling 50 short side traded quantity | 700 |
| ceiling 50 total surplus on traded quantity | 63,000 |
| equilibrium total surplus | 64,000 |
| floor 70 consumer surplus on traded quantity | 24,500 |
| floor 70 deadweight loss relative to equilibrium | 1,000 |
| floor 70 producer surplus on traded quantity | 38,500 |
| floor 70 total surplus on traded quantity | 63,000 |