When the quantity of a good bought and sold is below the market equilibrium quantity,the loss of total surplus that results is called:
A) deadweight loss.
B) producer surplus.
C) consumer surplus.
D) total surplus.

Question

Quizplus · Accepted Answer

Deadweight loss occurs when the quantity of a good bought and sold is below the market equilibrium quantity. It represents the loss of total surplus that results from the market inefficiency. Neither producer surplus nor consumer surplus describes this specific loss. Total surplus refers to the combined value of consumer and producer surplus, but does not specifically refer to the loss that occurs when the quantity bought and sold is below the market equilibrium.

When the Quantity of a Good Bought and Sold Is