In order to calculate deadweight loss, you need to know the change in price and the change in quantity demanded. The formula to make the calculation is: Deadweight Loss = . 5 * (P2 - P1) * (Q1 - Q2).

How do you calculate deadweight loss on a graph?

In the deadweight loss graph below, the deadweight loss is represented by the area of the blue triangle, which is equal to the price difference (base of the triangle) multiplied by the quantity difference (height of the triangle), divided by 2.

How do you calculate deadweight loss in monopoly?

Determining Deadweight Loss

In order to determine the deadweight loss in a market, the equation P=MC is used. The deadweight loss equals the change in price multiplied by the change in quantity demanded.