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Introducing Supply and Demand
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Economics Textbooks Boundless Economics Introducing Supply and Demand Government Intervention and Disequilibrium
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Economics
Concept Version 5
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Introduction to Deadweight Loss

Deadweight loss

Deadweight loss

This chart illustrates the deadweight loss created when a price floor is instituted on the market for a good. The amount of deadweight loss is shown by the triangle highlighted in yellow. This area is known as Harberger's triangle.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Deadweight-loss-price-ceiling."
    http://en.wikipedia.org/wiki/File:Deadweight-loss-price-ceiling.svg Wikipedia CC BY-SA.

Related Terms

  • Pareto optimal
  • deadweight loss
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