Deadweight loss occurs in a price floor but not in a price ceiling.

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Deadweight loss can occur in both a price floor and a price ceiling. A price floor sets a minimum price above the equilibrium price, causing a surplus of supply and a decrease in quantity demanded. This results in deadweight loss. On the other hand, a price ceiling sets a maximum price below the equilibrium price, creating a shortage of supply and an increase in quantity demanded, which can also lead to deadweight loss.

Deadweight Loss Occurs in a Price Floor but Not in a Price