deadweight loss
Definition
The net loss in economic welfare that is caused by a tariff or other source of distortion, defined as the total losses to those who lose, minus the total gains to those who gain. Usually identified in a supply-and-demand diagram in terms of change in consumer and producer surplus together with government revenue. The net of these appears as one or two welfare triangles.
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Nearby Terms
- dead loss
- dead money
- deadbeat
- deadline
- deadlock
- deadweight loss
- deal
- deal blotter
- deal date
- deal flow
- deal slip
