All Forum Posts by: Christian Malesic

Hello. Welcome to BiggerPockets.

Tell us a little about yourself.

It happens all the time.

Our local airport, the Harrisburg International Airport (HIA) is no where near Harrisburg, the capital city of PA - it is in Middletown, PA.

No prob.

I could not of said it better myself.

That's why I recommend everyone going through it - no matter which way you politically lean.

Thanks for the double-check J. Scott.

There are plenty of multi-family investors here. Hopefully, you will connect, through the site, with those in your area.

We do not have a tremendous amount of commercial experts, so we welcome you to our ranks.

Chuck,
Let me start with a first "hello" back to you.

We are glad you found us (hey, maybe that boss of yours is not so bad after all).

We look forward to learning from you.

Tim,

Wisdom from the youth.

(I am 40, so I can call you a youngin' all day)

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?