Course

Deadweight Loss

Instructor: Alex Tabarrok, George Mason University

Deadweight Loss : The ineconomic efficiency created when not all mutually profitable gains from trade are exploited and market equilibrium is not achieved. It is

Deadweight Loss: The ineconomic efficiency created when not all mutually profitable gains from trade are exploited and market equilibrium is not achieved. It is calculated by taking the sum of lost consumer surplus and producer surplus. This is from the video “Tax Revenue and Deadweight Loss” in the Principles of Microeconomics course.

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