The producer and consumer surplus lost as a result of price ceilings is often referred to as deadweight loss.

Name: The producer and consumer surplus lost as a result of price ceilings is often referred to as deadweight loss.
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Question

Quizplus · Accepted Answer

Deadweight loss is the loss of producer and consumer surplus that occurs when the quantity sold is reduced due to a distortion such as a price ceiling. Therefore, the statement is true.

The Producer and Consumer Surplus Lost as a Result of Price