Enlighten_me
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- Jun 18, 2026
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Deadweight loss
cause: a shift in either the demand or supply curve and therefore, equilibrium can no longer be achieved
effect: inefficient markets leading to poor allocation of resources and therefore, lost of consumer and producer surplus
calculation: difference between marginal benefit and marginal cost
Did I get it right? Are those the only things I need to know about deadweight loss aside from calculating it?
cause: a shift in either the demand or supply curve and therefore, equilibrium can no longer be achieved
effect: inefficient markets leading to poor allocation of resources and therefore, lost of consumer and producer surplus
calculation: difference between marginal benefit and marginal cost
Did I get it right? Are those the only things I need to know about deadweight loss aside from calculating it?