Is the welfare gain that society experiences when the amount of a good that is produced is more than the market equilibrium quantity.
The sum of Consumer Surplus and Producer Surplus.
Is the welfare loss that society experiences when the amount of a good that is produced is less than the competitive market equilibrium quantity.
Is the result of allocative efficiency.
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Deadweight loss is the welfare loss that society experiences when the amount of a good that is produced is less than the competitive market equilibrium quantity.
This condition typically arises from market distortions such as taxes, subsidies, or price controls, leading to an inefficient allocation of resources and a decrease in total welfare.
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