Question
In 1930 the Australian Football League (AFL), at the time the Victorian Football League (VFL), implemented a price ceiling wage on all AFL players known
In 1930 the Australian Football League (AFL), at the time the Victorian Football League (VFL), implemented a price ceiling wage on all AFL players known as the Coulter Law. The ceiling was 3 pounds, approximately $230 dollars in today's money. The market equilibrium price was 6.2 pounds and the equilibrium quantity of players was 450. The supply of players at the price ceiling is 300 whilst the willingness of clubs to pay for players is 11.4 pounds at the quantity of 300. What is the dead weight loss as a result of the price ceiling in pounds? Answer to the nearest two decimal places.
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