Describe the concept of deadweight loss.

Question

Question

Describe the concept of deadweight loss.

Answer 1

Answer #1

If we talk in terms of definition ,deadweight loss is the market inefficiency which is caused when demand and supply are not in the equilibrium.

It refers loss to the society because there is inefficient allocation of resources .

Some of the examples that create deadweight lossse are price ceiling ,taxation, price loss etc

Answer 2

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