In most of the economic systems, market contributes to decide the allocation of limited resources. When inefficient allocation of resources occurs, deadweight loss is present to measure the loss due to the inefficiency. This blog will focus on the introduction to this idea and how it is presented in a demand-supply diagram.
References
This blog referred to the knowledge taught in the Youtube Channel called Jacob Clifford. The specific video is named as “Markets: Consumer and Producer Surplus- Micro Topic 2.6”.