Deadweight loss created by a binding price ceiling. This "deadweight loss" is therefore attributed to both producers and consumers because neither one of them benefits from the surplus of the overall production. This difference in the amount reflects the quantity that is not being utilized or consumed and thus resulting in a loss. The presence of deadweight loss is most commonly identified when the quantity produced relative to the amount consumed differs in regards to the optimal concentration of surplus. In economics, deadweight loss is the difference in production and consumption of any given product or service including government tax.
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