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3 Tutorials that teach Deadweight Loss
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Deadweight Loss

Deadweight Loss

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Author: Colton Cranston
Description:
This lesson covers deadweight loss.
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Tutorial

Notes on "Deadweight Loss"

Key Terms

  • Deadweight loss
  • A situation, often caused by an imposed constraint, that results in either excess demand or supply occurring at the market price due to the inability of the market to adjust to market clearing price and quantity.
  • Consumer surplus
  • Determined by the difference between actual price paid for a good and the highest amount the consumer would have willingly paid for the good.
  • Producer surplus
  • The difference between actual payment for a good and the least amount a producer would have willingly agreed to receive for the good.