I am a geek, so I haven't been able to move on with my day, without getting this out of my head.
Let's review what you have:
D = 9 - p
S = 2 X p
Equil:
9 - p = 2 X p = 2p
9 = 2p + p = 3p
9/3 = p
So, yes, p = $3.00
I had to go to wikipedia to remember what a "deadweight loss" was.
Deadweight loss def
It is pretty intuitive, but I wanted to give you the right answer here.
So, your deadweight loss is $3.00.
This, is the difference between equilibrium and the price ceiling.
A few examples are on the web page listed above. Here is another from my head. You are a vendor at Sea World selling Cokes and subs. The equil for selling Cokes is $3.00 which represents where supply meets demand in a free market (as a vendor you would have caluclated this based on your cost of goods sold and a little experimentation over time). To make this problem work, let's say Sea World has a special today: all the Cokes you can drink are included with admission. They pass that cost along to you as a vendor within their park. Thus, they are creating a price ceiling of $0 for Cokes today. Your deadwight loss to provide Cokes is $3.00 for today only.
I hope that helps and I haven't given you misdirection. Again, it has been a long time. Can anybody confirm that I have done it all correctly?
