Change in Consumer and Producer Surplus from Price Controls ■○ bservations The total loss is equal to area b+ c o The total change in surplus (A-B)+(-A-C)=-B-C o The deadweight loss is the inefficiency of the price controls or the loss of the producer surplus exceeds the gain from consumer surplus Chapter Slide 8Chapter 9 Slide 8 ◼ Observations: ⚫ The total loss is equal to area B + C. ⚫ The total change in surplus = (A - B) + (-A - C) = -B - C ⚫ The deadweight loss is the inefficiency of the price controls or the loss of the producer surplus exceeds the gain from consumer surplus. Change in Consumer and Producer Surplus from Price Controls