The formula used in the calculation is:
\[ \text{DWL} = \frac{1}{2} (\text{Pc} - \text{Pp}) (\text{Qe} - \text{Qt}) \]
This calculator computes the deadweight loss in a market based on the input values of original and new prices and quantities. Deadweight loss represents the loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.
Let's assume the following:
Calculate the deadweight loss:
\[ \text{DWL} = \frac{1}{2} (12.00 - 10.00) (100 - 80) = \frac{1}{2} \times 2.00 \times 20 = 20.00 \]
Therefore, the deadweight loss for this example is $20.00.
