Deadweight Loss Calculator

A straight-line market with a per-unit tax. Consumer and producer surplus are measured at the untaxed price P*; deadweight loss is the trade the tax removes.

Loading the calculator. Its results and Why buttons work once it has computed.

Outputs
Market
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  • Equilibriumthe point where Demand meets Supply
  • Taxed equilibriumthe point where Demand meets Taxed supply
  • Consumer surplusthe shaded area between Demand (above) and P* (below), from Quantity 0 to Equilibrium
  • Producer surplusthe shaded area between P* (above) and Supply (below), from Quantity 0 to Equilibrium
  • Deadweight lossthe shaded area between Demand (above) and Supply (below), from Taxed equilibrium to Equilibrium
  • Demanda line the model computes
  • Supplya line the model computes
  • Taxed supplya line the model computes
  • P*a level line at the Price of Equilibrium