Deadweight loss
From The Art and Popular Culture Encyclopedia
Related e |
Featured: |
A deadweight loss, also known as excess burden or allocative inefficiency, is a loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved. That can be caused by monopoly pricing in the case of artificial scarcity, an externality, a tax or subsidy, or a binding price ceiling or price floor such as a minimum wage.
[edit]
See also
Unless indicated otherwise, the text in this article is either based on Wikipedia article "Deadweight loss" or another language Wikipedia page thereof used under the terms of the GNU Free Documentation License; or on research by Jahsonic and friends. See Art and Popular Culture's copyright notice.