deadweight loss



Inefficiency created in the market, typically due to demand and surplus issues that have a negative impact on a society. Deadweight loss is often illustrated by the use of a diagram that depicts a triangle formed by the demand curve above, supply curve below, and quantity. The most common reason for deadweight loss is government actions such as taxes or supply controls.

Use deadweight loss in a sentence

  • Unfortunately we suffered a deadweight loss as our position relative to other competitors in the market was quite poor. This cost us the business.

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  • Sometimes there will be a deadweight loss and it is best to just cut the cord and move on to the next project and quit wasting time.

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  • The car industry suffered a deadweight loss because of low consumer confidence due to the many recalls that occurred over the past twelve months.

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