Deadweight loss occurs when supply and demand are not in equilibrium.
Using the Waldfogel study, the deadweight loss is between $90.6 and $302
The average amount spent is given as:
Amount = $906
Using the Waldfogel study, the deadweight loss is between 1/10 and 1/3 of the amount spent.
So, we have:
[tex]Minimum = \frac{1}{10} * \$906 = \$90.6[/tex]
[tex]Maximum = \frac{1}{3} * \$906 = \$302[/tex]
Hence, the deadweight loss is between $90.6 and $302
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